BTC/USD Forex Signal: Supported from $10k

Adam Lemon

There is little change to the technical picture, which is just marginally more bullish. 

BTC/USD: Yet price failing to build real bullish momentum

Last Thursday’s signals were not triggered, as there was no bearish price action the next time the price reached the resistance level identified at $10,397.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered prior to 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 $9,731 or $9,655.
  • Place 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.
  • Remove 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

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $10,414 or $10,790.
  • Place 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.
  • Remove 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 last Thursday that as long as the $10,000 continued to hold up, we were bound to see a more substantial rise in price.

I was ready to take a bullish bias if we had gotten 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.

This was a good call as it was enough to keep out of trouble last Thursday, with the price doing little and hardly moving but consolidating below $10,500 – there was no hourly close above that price.

There is little change to the technical picture, which is just marginally more bullish. The $10,000 area continues to hold up and the most likely scenario is a stronger price rise, but it just does not take off although we are beginning to see now some short-term bullish momentum.

It looks as if the resistance level at $10,414 is weak and will probably be invalidated very soon.

I think we are a bit likely to see higher prices today, but there is every sign the move will be slight and choppy. Therefore, I think it wise to either buy at a bounce from support or wait for two consecutive hourly closes above $10,790 before entering any long trade.

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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