BTC/USD Forex Signal: Stronger Bullish Spike

Adam Lemon

The technical picture now looks more bullish as the price has made a strong bullish movement.

BTC/USD: $9,352 today’s likely pivotal point

Yesterday’s signals produced a nicely profitable trade from the bullish bounce from the support level identified at $9,142.  

Today’s BTC/USD Signals

Risk 0.50% per trade.

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

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,284 or $9,142.
  • 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 $9,352 or $9,462.
  • 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 as the price had edged up to break above the upper trend line of the readjusted consolidating triangle, bulls seemed to have a slight edge.

However, I was only prepared to be bullish from another bounce near the $9,000 level or if the price could get established above $9,284 later. Neither approach turned out to be useful before the Tokyo close.

The technical picture now looks more bullish as the price has made a strong bullish movement but may well stall at the key resistance level of $9,352.

I will want to take a bullish bias today if we get two consecutive hourly closes above that level later today.

There is certainly increasing risk-off sentiment and market movements which should continue to boost Bitcoin. Despite that, we are only going to see real bullishness once the price can get established above $10,000.

BTC/USD

There 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.
Learn more from Adam in his free lessons at FX Academy

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