BTC/USD Forex Signal: Minor Bullish Breakout

Adam Lemon

The technical picture is slowly becoming more bullish every day as long as $9,000 continues to hold.

BTC/USD: Well supported from $9,000 area

Last Thursday’s signals produced a long trade from the bullish pin candlestick which rejected the support level at $9,014 and made a little profit.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may be entered before 5 pm Tokyo time Tuesday.

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,109 or $9,011.
  • 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 $9,304, $9,400, 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 last Thursday that the thing to watch for here really was a bullish bounce at the support near $9,000 which could be a good long-term trade entry if the price finally breaks bullishly above the psychological resistance at about $10,000 which has been a cap for a long time.

This was a good call as the $9,000 area has continued to hold as firm support, although the entry we got that day did not work out.

The technical picture is slowly becoming more bullish every day as long as $9,000 continues to hold. We see the price slowly advancing and new higher support at $9,109.

The thing to watch for now is whether the price will continue to rise and break out above the nearby resistance levels leading up to the psychologically very important area at $10,000.

I will take a bullish bias here if we get two consecutive hourly closes later today above $9,304.

BTC/USD

Concerning the USD, there will be a release of ISM Non-Manufacturing PMI data at 3 pm London time.

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

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.