BTC/USD Forex Signal: Price Refusing to Rise

Adam Lemon

BTC/USD: Yet buying below $10k

Yesterday’s signals may have produced a short trade from $10,408 which may have been stopped out depending upon how tightly the stop was set. The price is falling now over the short-term so such a trade would be in floating profit and is probably worth holding onto until the price reaches $10,000 according to the current technical situation.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken before 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 $9,731, $9,655, or $9,462.
  • 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.
  • 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 run.

Short Trade Ideas

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $10,397 or $10,790.
  • 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.
  • 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 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 would still take a long trade from a bullish bounce at any identified support level which was reached below $10,000 or if we got two consecutive hourly closes later above $10,500.

I thought it was significant that Bitcoin is finding strong support at about $10,000 while other risky assets have been falling.

Despite my fairly bullish outlook and the fact that the price remained supported from $10,000 over the day, it was unable to break up above the first resistance level, which I have adjusted slightly.

This presents a slightly less bullish technical picture, yet I strongly believe that as long as the $10,000 continues to hold up, we are bound to see a more substantial rise in price.

I will take a bullish bias if we get two consecutive hourly closes above $10,500 or a bullish bounce from any of the support levels shown in the price chart below underneath the $10,000 level.

BTC/USD

There is nothing of high importance due today concerning 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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