BTC/USD Forex Signal: Bullish Above $10,970

Adam Lemon

This scenario is looking more likely now we see risk sentiment returning more strongly to the market.

BTC/USD: Highest price in 10 days

Yesterday’s signals produced a short trade from the bearish rejection of the resistance level identified at $10,790. This trade is more or less at breakeven. I do not have much faith in its success so it may be wise to exit unless the price starts making new short-term lows soon.

Today’s BTC/USD Signals

Risk 0.50% per trade.

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

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $10,620 or $10,414.
  • 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 $10,790 or $11,460.
  • 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 the most likely scenario was a stronger price rise.

It thought that it looked as if the resistance level at $10,414 was weak and would probably be invalidated very soon.

I thought 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.

This was a good call in terms of forecasting what would happen, but some money could have been made following the rise to $10,790 as we did not get a retracement to an identified support level.

The price is currently being held by the resistance at $10,790 and this is clearly going to be today’s pivotal point.

I am prepared to take a bullish bias if we get two consecutive hourly closes above $10,790 as the price has room to rise all the way to $11,460 after that hurdle. This scenario is looking more likely now we see risk sentiment returning more strongly to the market.

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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