BTC/USD Forex Signal: Still Bullish

Adam Lemon

That resistance level has survived intact, as has the upper trend line which has succeeded in holding down the price.

Yesterday’s signals were not triggered as there was no bullish price action when the support level at $7,228 was first reached.

Today’s BTC/USD Signals

Risk 0.50% per trade.

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

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $7,228 or $7,047.
  • 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 $7,670 or $8,004.
  • 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 outlook continued to be bullish technically and this was also supported by better risk sentiment in markets generally which is causing a sell-off in the USD.

I wanted to remain bullish above $7,228.

This was an OK call as the price has remained basically bullish despite briefly dipping below $7,228 and spending a few hours there.

That resistance level has survived intact, as has the upper trend line which has succeeded in holding down the price.

This means that overall, there is no real change to the basically bullish technical picture. I will remain weakly bullish as long as the price holds up above $7,000 but I want to see the price close a couple of consecutive hours above $7,500 before I will take a strong bullish bias here.

Much is likely to depend upon whether risk sentiment turns sour, or stock markets continue their rise.

BTC/USD

There is nothing of high importance scheduled for 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

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