BTC/USD Forex Signal: Pivotal Point $5,683

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BTC/USD: Weakly bearish

Last Thursday’s signals were not triggered, as there was no bearish price action at $5,937.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken prior to 5pm Tokyo time Tuesday.

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $5,683 or $4,903.

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

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

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

Short Trade Ideas

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $6,089 or $6,418 or $6,793.

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

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

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

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 thought we may see a short-term rise in price, but I thought risky assets such as Bitcoin were going to go lower still over the coming days and weeks, so I was happy to take a bearish bias if we get a bearish price action reversal at any key resistance levels.

This was a good call as the price did rise over the short term, but has now pulled back to look more bearish, with the short-term price action suggesting a continuing gentle fall is most likely.

The problem for bears is that the support level below at $5,683 looks very strong, so it will probably be hard for the price to break below it. However, even if we do get a bounce there, I have no faith that a strong bullish movement will happen. For this reason, I would avoid trading this pair today, or look for a short trade from any of the higher resistance levels identified above.BTCUSDThere is nothing of high importance scheduled today concerning the USD.

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.
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