BTC/USD Forex Signal: Bearish Retracement

BTC/USD: Bullish bounce from support looking likely

Yesterday’s signals were not triggered as none of the key levels were reached during yesterday’s session.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken before 5pm Tokyo time Thursday.

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,462, $9,400, or $9,300.

  • 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 $9,547 or $9,731.

  • 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 despite the bearish reversal we saw at $9,731, the technical picture had become more bullish, so I preferred a long trade from a bounce at any support level, especially at $9,462.

This was an OK call, although we saw little movement in the price yesterday. However recent hours saw a spike down which appears to have reversed just above the support level at $9,462.

I think the basic outlook technically is still bullish, so I am still interested in taking a long trade from a bullish bounce at any support level. The levels at $9,462 and $9,350 look like especially good candidates, particularly $9,350 as it is confluent with the former resistant descending trend line which is shown in the price chart below.BTCUSDThere is nothing of high importance scheduled today regarding 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.