BTC/USD Forex Signal: Finally, Firmly Bullish

Adam Lemon

BTC/USD: Level at $9,150 has flipped to become support

Yesterday’s signals were not triggered, as there was no bearish price action when the resistance level at $9,151 was reached.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered until 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 $9,151 or $8,748.

  • 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 $10,131.

  • 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 again be ready to a bullish bias once we got two consecutive hourly closes above $9,150 – in fact, $9,200 would be even better and even more strongly bullish.

This was a good call as the price did make this break and has since held up above $9,151 which seems to have become new higher support, which is a bullish sign. However, the price has not really risen at all over the past 24 hours, it has mostly just gone sideways. Despite that, the conditions are ripe for a further rises as there is no resistance until beyond the $10,000 level although of course that level itself might be a barrier.

I would take a bullish bias today once we get two consecutive hourly closes above the recent high price at $9,420. The approach of the next Bitcoin halving date is also probably adding to the bullish conditions.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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