BTC/USD Forex Signal: Bullish Price Channel Holds - 28 April 2020

I thought that the price would rise further over the short-term, but bulls may find it difficult to push the price above the $8,000 area which sees the start of a cluster of three key resistance levels.

Key resistance overhead beginning at $8,000

Yesterday’s signals were not triggered as none of the key levels were reached.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken before 5pm Tokyo time Wednesday.

Long Trade Idea

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $7,200.
  • 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 Ideas

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $8,004, $8,162, or $8,375.
  • 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 the price had now become established within a symmetrical bullish price channel, which was a bullish sign. I thought that the price would rise further over the short-term, but bulls may find it difficult to push the price above the $8,000 area which sees the start of a cluster of three key resistance levels.

This was an OK good call as although the price has not really risen over the past day, it has held up by going sideways, and has still not reached the resistance starting at about $8,000.

I see no change to the technical picture and so I take the same approach as yesterday – I would be prepared to take a short trade from a strong reversal at any of the resistance levels above $8,000 but until that price is reached I see the price as more likely to rise over the day. The USD remains quite weak so that should help boost the price too.

BTC/USD

Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.

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.