BTC/USD Forex Signal: Bullish Breakout - 2 April 2020

Adam Lemon

BTC/USD: New bullish price channel

Yesterday’s signals were not triggered as there was no appropriate price action at any of the levels which were reached to trigger a trade entry signal.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may be entered prior to 5pm Tokyo time Friday.

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $6,576, $6,386 or $6,293.

  • 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 Idea

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $7,228.

  • 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 there was every reason to be bearish, but I would wait for a break below $6,293 evidenced by two consecutive hourly closes below that level on rising short-term volatility before taking a bearish bias.

Unfortunately, this was a bad call as we did get the bearish set up, but the price then reversed bullishly quite strongly, to create a major change in the technical picture.

The price chart below shows we have seen a bullish breakout above the $6,600 price area which I had seen as pivotal, and importantly, a new bullish price channel can be drawn.

I do expect risk sentiment will generally deteriorate in markets soon, which should logically have a bearish impact on Bitcoin, but as long as the price holds up above $6,600 the technical factors are indicating higher prices. If the price can get established above $6,800 that would be an even more bullish signal, and I would take a bullish bias if we get two consecutive hourly closes above that price level later.BTCUSDRegarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.

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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