BTC/USD Forex Signal: Bullish New Highs

Adam Lemon

BTC/USD: Long-term bullish trend advancing

Yesterday’s signals produced a profitable long trade from the bullish breakout, from which it may well be wise to exit now as the price is making a bearish retracement.

Today’s BTC/USD Signals

Risk 0.50% per trade.

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

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $13,368 or $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

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $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 I thought it made sense to look for a long trade, which might be found after a deep retracement to $12,288 or alternatively after a breakout to a new high above $13,368. I was happy to enter a long trade if we had gotten two consecutive hourly closes above $13,368 which we did – this was a good call as it produced about $300 of profit.

Bitcoin is interesting right now as the price is breaking to new long-term highs, giving bulls a statistical edge.

I remain bullish on Bitcoin and I see a long trade from a bullish bounce at the new higher support level at $13,153 as a great potential new long trade opportunity.

It is notable, and a very bullish sign for Bitcoin, that it is rising in value when most other risky assets are falling.BTCUSDThere is nothing of high importance due today regarding 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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