BTC/USD Forex Signal: Quietly Bullish

Adam Lemon

We would want to see the price get established below $8,748 before looking to take any short trades.

BTC/USD: Bears still holding price below $9,200

Yesterday’s signals produced a losing long trade from the bullish candlestick which rejected the support level identified at $8,992 during the first half of yesterday’s London session.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken before 5pm Tokyo time Thursday.

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,748 or $8,375.

  •  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 Idea

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $9,151.

  • 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 there are both bullish and bearish developments happening here, with bulls breaking the descending trend line, but bears still holding the price below the strong resistance level at $9,150. Therefore, I was waiting for two consecutive hourly closes above $9,150 in order to take a bullish bias here. This never happened, with the price not even touching $9,150 yet, but the price is still acting quite bullishly even though yesterday’s nearest support level at $8,992 has been invalidated.

This means that the same approach will make sense again today: taking a bullish bias once we get two consecutive hourly closes above $9,150 – in fact, $9,200 would be even better and even more strongly bullish.

I would want to see the price get established below $8,748 before looking to take any short trades.

BTCUSD

Concerning the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm 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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