BTC/USD Forex Signal: Still Bearish

Adam Lemon

BTC/USD: Heading towards $10k area

 

Yesterday’s signals were not triggered, as there was insufficiently bearish price action when the resistance level identified at $10,641 was first reached.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be taken between 8am and 5pm Tokyo time Friday.

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $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 $10,641, $10,674, $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 that the picture looked a little more bearish, and recent price action suggested that if $10,621 held as resistance, the price was going to travel back down towards $10,000 and the two key support levels down there which remained valid, at $10,421 and $10,351.

The resistance level at $10,621 did not hold but the price was unable to exceed it by much before turning bearish again and making another lower swing high at about $10,674 which has become new resistance. The price is now back below $10,421 also and seems to be heading down.

The big picture still holds – Bitcoin remains an attractive long-term buy close to $10,000 but offers little other opportunity.

I will be happy to take a long trade later from a bullish bounce at either of the two support levels above $10,000.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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