BTC/USD Forex Signal: Still Bullish Above $9,476

Adam Lemon

BTC/USD: Yet strong resistance near $10,000

Yesterday’s signals were not triggered, as there was no bullish price action at $9,587 when it was first reached.

Today’s BTC/USD Signals

Risk 0.50% per trade.

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

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,146 or $9,041.

  • 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

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $10,131 or $10,696.

  • 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 be happy to take a long trade at $9,587 if we get a bullish bounce there later today, but a short trade from a bearish reversal between $10,000 and $10,130 looked very attractive over the short term, as there clearly seemed to be selling going on in that area.

I think this was a pretty good call, as the price was unable to even reach $10,000 later but is still mostly holding up above the support which I have adjusted down a little from its previous level at $9,587.

We still have a balance between buying below $9,500 and probable strong resistance at and above $10,000.

The support level near $9,500 look a little weak, so I would change my approach from yesterday to only looking for a long trade at the lower support levels.

Again, I would take either a long from support or a short from resistance today. I see the resistance level above $10,000 as likely to be felt at $10,000 so even if the price gets just as high as that then reverses, I will take a short trade from that reversal.BTCUSDRegarding the USD, the Chair of the Federal Reserve will be testifying before the Senate at 3pm 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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