BTC/USD Forex Signal: Bullish

Adam Lemon

Still making new long-term highs.

Last Thursday’s signals were not triggered as none of the key support or resistance levels identified have been reached yet.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken before 5pm Tokyo time Tuesday.

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $16,145, $15,507, $15,144, or $14,946.

  • 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 $17,901.

  • 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 as the price had room to rise much higher without encountering any obstacles until it got above $17,000, I was ready to take a bullish bias if we got two consecutive hourly closes between $16,000 and $16,600.

This was a good and profitable call as we did get these closes, and the price at the time of writing is a little more than $250 than the entry price that we got just above $16,000.

The technical picture is bullish, even though the former supportive trend line broke. None of the old support levels were reached during this bearish retracement, and we now have a new higher support level at $16,145 as well as a new supportive trend line. The price is clearly being held up by a succession of higher swing lows.

Market sentiment is risk-on, and this is helping Bitcoin to rise and adds another factor to the bullish case.

The price has reached new multi-month highs over the past few days and shows every indication that it was now begin another firm bullish movement. A key level to watch if $16,145 as if the price remains above this level, the outlook will be bullish.

Bulls should beware of potential resistance at the $16,500 area.

I will take a long trade entry if the price retraces to the support level at $16,145 and makes a firm bullish bounce there.BTC/USDThere 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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