BTC/USD Forex Signal: Exponential Bullish Move

Adam Lemon

BTC/USD: New 3-month high prices

Yesterday’s signals produced a profitable trade above $12,288.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be entered prior to 5 pm Tokyo time Friday.

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $12,288, $12,105, $11,861, or $11,553.
  • 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 $13,218 or $14,058.
  • 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 due to the previous day’s exponential, strong advance, I would take a long trade if we had gotten two consecutive hourly closes above the nearest resistance level at $12,288 as the price had a lot of room to rise before meeting the next resistance level at $13,218.

This was a great call as it got us in long quite close to $12,288 and the price went on to top at $13,218 just as I had been expecting.

Yesterday again saw another exponential rise in the price of Bitcoin, and in fact, the price has broken to a new 3-month long-term high, which is a bullish sign.

The price has made quite a strong bearish retracement from $13,218 so I expect that this resistance level will hold today.

There is a clear long-term bullish trend so it may be wisest to look for a long trade following a bullish bounce at the support level at $12,288 if it is reached later.

BTC/USD

Regarding the USD, there will be a release of Unemployment Claims data at 1:30 pm London time.

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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