BTC/USD Forex Signal: Bulls in Charge

Adam Lemon

Lopsided consolidating triangle pattern holding.

Yesterday’s signals produced a long trade from the bullish bounce at $15,144 which is currently in some floating profit at the time of writing.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken before 5pm Tokyo time Thursday.

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $15,144, $14,946, $14,571, or $14,258.

  • 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 yesterday that due to all technical factors remaining bullish, we were likely to see more upside. I preferred to wait for the breakout, so I was ready to enter a long trade if we had gotten two consecutive hourly closes above $16,000 later.

This was a good and accurate call, as although the price has not broken above $16,000 it is higher than it was this time yesterday.

Despite the slow, steady bullish advance, the price is also still within the technical triangle trendlines which I drew yesterday.

Risk appetite is persisting, the short-term action is bullish, and the price is very close to new multi-month highs. These are all bullish factors and I think it will remain wise to wait for the breakout above the technical triangle and also the round number at $16,000 which may act as resistance as a psychological level.

I will take a long trade if we get two consecutive hourly closes later above $16,000.BTC/USD

There 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

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.