BTC/USD Forex Signal: Holding Up Above Support

Adam Lemon

BTC/USD: Supported from the $9,000 / $9,500 area

Yesterday’s signals were not triggered, as none of the key levels have been reached yet.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be taken before 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 $9,431, $9,316 or $9,063.

  • 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 $10,696.

  • 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 saw the best approach as putting faith in this supportive area below $9,000 as likely to be decisive. So, I would not take a bearish bias until we got two consecutive hourly closes below $9,000.

This was a good call, as this cluster of support levels has continued to hold and even to push the price up slightly, yet the price eventually falls again.

It looks as if bulls and bears are going to have a big fight over this $9,000 area. It should be quite easy to see when the bears win, which will be when the price gets established below $9,000. However, it will be much more difficult to tell if the bulls win, although if the price can get established above the lower trend line of the price channel shown in the chart below, that would be some kind of bullish sign.

I see the best approach as looking for a long trade from a bounce at either $9,316 or $9,063.BTCUSDThere is nothing of high importance due today concerning the USD.

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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