BTC/USD Forex Signal: Bullish Breakout

Adam Lemon

BTC/USD: $11,553 now likely to be strong support

Yesterday’s signals were not triggered as the bearish price action took place slightly higher than $11,804.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken before 5 pm Tokyo time Wednesday.

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $11,553, $11,407, or $11,185.
  • Put 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 $11,804, $11,959, or $12,105.
  • Put 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 I would take a bullish bias if we had gotten two consecutive hourly closes above $11,553 to the next resistance level, as the price chart suggested a bullish breakout beyond that level could see the price develop some bullish momentum.

This was a good call as this would have given a long trade entry at $11,665 which then went on to hit the next resistance level at $11,804 producing a profitable trade.

The technical picture is now more bullish, with the price having broken out to reach its highest level in about six weeks. However, the resistance level at $11,804 was able to hold the price and may now have produced a bearish double top reversal formation.

It is likely that the new support level at $11,553 will be strong, and also that we may see a bearish retracement, so I think the best approach here will be to look for a long trade entry from a bullish bounce at the nearest support 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

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.