BTC/USD Forex Signal: Buying Below $10k Continues

Adam Lemon

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

Yesterday’s signals were not triggered as none of the key levels were reached yet.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered prior to 5 pm Tokyo time Thursday.

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,731, $9,655, or $9,462.
  • 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 $10,408 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 yesterday that we were seeing the downwards movement flatten out and bottom at about $10,000 which is a major psychological round number.

I also thought that the area at about $10,500 looked pivotal and if the price would get established above that, the situation would look more bullish.

This was a good and correct call as the price keeps getting bid up every time it dips a little below $10,000 while the price has so far failed to even reach $10,500.

There is little change to the technical picture.

I still will take a long trade from a bullish bounce at any identified support level which is reached below $10,000 or if we get two consecutive hourly closes later above $10,500 – while being careful of the resistance at $10,790 in that second case.

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

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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