BTC/USD Forex Signal: Bulls Slowly Winning

Adam Lemon

The technical picture is really unchanged – bullish as long as $9,316 or even $9,000 holds as support, bearish below $9,000.

BTC/USD: Strong support at $9,431

Last Thursday’s signals produced a long trade from the bullish bounce at the support level of $9,431 which was eventually stopped out at break even.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be entered prior to 5pm Tokyo time Tuesday.

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $9,431, $9,316 or $9,063.
  • 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 $10,696.
  • 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 last Thursday that the best approach would be looking for a long trade from a bounce at either $9,316 or $9,063.

This was a correct and good call.

I noted that there was a big struggle going on between $9,000 and $9,500 and it would be unclear when the bulls won.

The support levels have been holding since last Thursday, so it can be said the bulls are winning a small victory so far by successfully defending this area. However, the price has made little directional progress and has basically moved sideways over recent days.

The technical picture is really unchanged – bullish as long as $9,316 or even $9,000 holds as support, bearish below $9,000.

I see the best approach today again as looking for a long trade from a bounce at either $9,316 or $9,063.

BTC/USD

There is nothing of high importance due today concerning the USD.

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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