BTC/USD Forex Signal: Consolidating Above $5k - 18 March 2020

Adam Lemon

BTC/USD: New higher support at $4,912

Yesterday’s signals were not triggered, as none of the key levels were reached before 5pm Tokyo time.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered before 5pm Tokyo time Thursday.

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $4,903, $4,116, $3,807 or $3,000.

  • Put the stop loss $50 below the local swing low.

  • Adjust the stop loss to break even once the trade is $50 in profit by price.

  • Take off 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to ride.

Short Trade Idea

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $5,937.

  • Put the stop loss $50 above the local swing high.

  • Adjust the stop loss to break even once the trade is $50 in profit by price.

  • Take off 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to ride.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

BTC/USD Analysis

I wrote yesterday that I would take a bearish bias from a bearish reversal following a pullback to the resistance identified at $5,937 which looked like it would act as a very solid resistance level if reached soon. The coronavirus crisis will not end soon and it hard to se risk sentiment improving enough to substantially raise the price of Bitcoin while it lasts.

This call was enough to keep out of trouble but was not particularly accurate as the price has managed to find some support around the $5,000 area. It may be that this area is seen as good value by a lot of long-term buyers with mental anchors located at this kind of price.

Despite the recent supportive price action, I think it is crazy to buy Bitcoin in this panic environment. Risk sentiment surely has further to fall, so I think we are extremely likely to see lower prices in the coming days and weeks. For this reason, I continue to look for short trades from bearish bounces at any resistance levels which are reached.BTCUSDThere is nothing of high importance scheduled today concerning the USD.

About the Author
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

Currency Pairs:
Comments

Did you have a good experience with this broker? A bad one? Tell our team and traders worldwide about your experience in our User Reviews tab. Your email address will not be posted.

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments
Add Comment

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.