BTC/USD Forex Signal: Weakly Bullish

Adam Lemon

BTC/USD: Room to rise much higher

Last Thursday’s signals produced a short trade from the bearish rejection of the resistance level at $13,218 which produced a small amount of profit.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be taken before 5pm Tokyo time Tuesday.

Long Trade Idea

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $12,288.
  • 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 Idea

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $14,058.
  • 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 last Thursday that I expected the resistance level at $13,218 would hold over the day.

I noted the clear long-term bullish trend so thought it would be smart to look for a long trade following a bullish bounce at the support level at $12,288.

The support level was never reached, but I was correct about the resistance level at $13,218 holding when it was touched later that day.

The former resistance level at $13,218 has now been invalidated and the price has room to rise all the way to $14,058 before hitting another obvious resistance level. The price is also in a long-term bullish trend and recently reached another new multi-month high.

The technical signs are all bullish, but the price is just moving up slowly and has been for a few days now.

I think it makes sense to look for a long trade, but there are no clear entry points until $12,288 so it may be wise to stand aside from trading Bitcoin today until the picture becomes clearer.BTCUSDThere 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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