BTC/USD Forex Signal: Still Bullish - 25 March 2020

Adam Lemon

BTC/USD: Strong resistance likely at $7,228

Yesterday’s signals were not triggered as none of the key levels identified have been reached yet.

Today’s BTC/USD Signals

Risk 0.50% per trade.

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

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,418, $6,089, or $5,683.

  • 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 $7,228, $7,670 or $8,004.

  • 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 would take a weakly bullish bias today if we had gotten a bullish bounce from a pullback to the support level at $6,418. This could have been a good call as the price has continued to rise, but unfortunately the price never quite reached that support level.

The technical picture is now a little more bullish, but the next resistance level above looks strong, so it is quite likely to struggle to break that if reached.

There has been a recovery in risk sentiment over recent hours as the U.S. announces a $2 trillion rescue package which has helped hold up the Bitcoin price, but how long that improvement will last is a good question – I think not for very long, so I see a short-term long trade from the nearest support as a good potential trade but I see a medium-term short trade from a reversal at $7,228 as an even better opportunity if it sets up today.BTCUSDThere is nothing of high importance scheduled today regarding 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

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