BTC/USD Forex Signal: Strong Bullish Move

Adam Lemon

BTC/USD: Lots of room above $12,288 resistance level

Yesterday’s signals produced a losing short trade entry from the bearish reversal at $11,804 however I talked about looking for a long trade entry yesterday.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered before 5 pm Tokyo time Thursday.

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $12,105, $11,861, or $11,553.
  • Place 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 $12,288 or $13,218.
  • Place 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 technical picture had become more bullish, with the price having broken out to reach its highest level in about six weeks. I thought it was likely that the new support level at $11,553 would be strong, and also that we may see a bearish retracement, so I thought the best approach here would be to look for a long trade entry from a bullish bounce at the nearest support level.

I was looking in the right direction, but it would have paid off to be more aggressive and trade a breakout above the $11,800 area.

We have seen an exponential strong advance by the price here as risk sentiment has improved in markets while the U.S. Dollar is selling off, and these conditions have helped boost the rise in price.

The price may now need to make a bearish retracement, but I will certainly look for a long trade if we get two consecutive hourly closes above the nearest resistance level at $12,288 as the price has a lot of room to rise before meeting the next resistance level at $13,218. I am already ready to take a long trade if we get a bullish bounce at $12,105.

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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