BTC/USD Forex Signal: Weakly Bearish

Some currencies are advancing against the U.S. Dollar, but Bitcoin looks relatively weak. 

BTC/USD: Support at $11,400 likely to be tested soon

Yesterday’s signals were not triggered as neither of the key levels were reached.

Today’s BTC/USD Signals

Risk 0.50% per trade.

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

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $11,484 or $11,400.
  • Put 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

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $11,924, $12,105, or $12,208.
  • Put 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 there was some short-term bullish momentum, but it looked likely that this would fade out completed as the price got close to the $12,000 area which should be resistant.

I wanted to stand aside from trading Bitcoin for the time being until the price breaks out of the $12,000 to $11,400 area.

These were good calls, as the price made a bearish turn yesterday once it reached the $11,800 area. The short-term price action is showing some bearish momentum as the price heads towards the nearest support level at $11,484.

Some currencies are advancing against the U.S. Dollar, but Bitcoin looks relatively weak. However, I think the support level at $11,400 is likely to hold, at least for a while, so as I see this level as likely to be very pivotal, and there is still a long-term bullish trend, I will take a long trade from a bullish bounce here.BTCUSDThere is nothing of high importance due 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.