BTC/USD Forex Signal: Reversal at $10,798

Adam Lemon

BTC/USD: Bought at $10k yet no real bullish momentum

Yesterday’s signals were not triggered as none of the key levels have been reached yet.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be taken 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 $10,641, $10,421, or $10,351.
  • Place 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 $10,798, $10,847, or $11,023.
  • Place 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 the price was really just going sideways above $10,000. There is buying there, but no sign that the price is going to make any significant new highs above $11,023.

As long as this situation continued, I thought that buying at support levels just above $10,000 or even lower was likely to be the best approach. Selling at $11,023 could also be a good though shorter-term trade.

My analysis has remained accurate, the price has risen somewhat but still shows no real bullish momentum. In fact, we have seen a new lower resistance print at about $10,800.

I still see more potential on the long side as long as the price remains above $10,000 so it is possible to buy following a bounce at any of the identified support levels with the odds in your favor. However, a better approach is likely to be waiting until after we get a bullish breakout above the key resistance level at $11,023. This will generate a lot of speculative interest in Bitcoin if it happens.

I will take a long trade here in Bitcoin if get two consecutive hourly closes above $11,023.

BTC/USD

Regarding the USD, the Chair of the Federal Reserve will be giving a minor speech at 3:40 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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