BTC/USD Forex Signal: Bulls in Retreat

Adam Lemon

Trading reversals at either level that may set up will probably be the best Bitcoin trading strategy for now.

Yesterday’s signals were not triggered as the price did not reach any of the support or resistance levels I had identified.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be taken before 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 $17,097, $16,898, or $16,173.

  • Put 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 $18,000, $18,411, $19,977, or $20,000.

  • 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 although I was generally bullish on Bitcoin, I noted the new resistance level close by at $18,411 and I saw this as likely to be the day’s pivotal point.

This was a good call made on a day when many people were losing their heads over Bitcoin and going recklessly long. Waiting for the price to break above $18,411 was enough to keep out of trouble, as the price never even reached this level yet.

The situation now is more bearish as markets move into risk-off sentiment mode. This sentiment almost always causes a sell-off in Bitcoin, and it has done so today. Another sign of increasing bearishness is the new lower resistance level shown in the rice chart below which has clearly formed confluent with the round number at $18,000.

I think the price is likely to remain between $18,000 and $16,898 over today, so trading reversals at either level that may set up will probably be the best Bitcoin trading strategy for now.BTC/USDThere is nothing of high importance scheduled 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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