BTC/USD Forex Signal: Rising Stairstep Advance

Adam Lemon

The technical picture has become a little more bullish with a strengthening upwards movement.

BTC/USD: Yet bulls muted below $10,000

Yesterday’s signals produced a short trade entry from the bearish rejection of the resistance level identified at $9,462 and this trade is currently in a little floating profit. It should be monitored closely as the medium-term trend is bullish.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken prior to 5 pm Tokyo time Friday.

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $9,190, $9,109 or $9,011.
  • 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 Ideas

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $9,547 or $9,731.
  • 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 yesterday that I remained basically bullish here and I would be happy to take a long trade from a bullish bounce which may set up later from any of the support levels above $9,000.

I was correct to look to the long side, as the price advanced over the day, although none of the key support levels I identified were hit so no long trade signal was triggered.

The technical picture has become a little more bullish with a strengthening upwards movement.

However, bulls should not get too excited yet, as we are still well within a long-term consolidation pattern below the psychologically key $10,000 level.

We are currently seeing an inability for bulls to break up above the nearest resistance level at $9,462 which is holding. A deeper bearish retracement from here would not be a surprise.

It is likely there will be a lot of false bullish breakouts until the level at $10,000 is finally exceeded.

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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