BTC/USD Forex Signal: Still Bullish

Adam Lemon

Lopsided consolidating triangle pattern.

Yesterday’s signals produced a long trade from the bullish bounce at $14,946 which is currently in some floating profit at the time of writing.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered prior to 5pm Tokyo time Wednesday.

Long Trade Ideas

  • Long entry 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.

  • 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 Idea

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $17,901.

  • 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 due to several bullish technical signs, I took a bullish bias on Bitcoin, which had been boosted by the improvement in global risk sentiment we have seen over recent days.

I thought the long-term bullish trend was likely to continue and so I decided to enter a long trade if we got two consecutive hourly closes above $16,000.

The price has not even reached $16,000 so this call was enough to keep out of trouble. In fact, a long trade from a bullish bounce at support did set up.

The technical picture remains bullish, we are seeing a bullish consolidation in the form a triangle pattern, while all the key support levels are remaining valid.

I think we will see more upside, although this is not close to being certain – it is just more likely.

Therefore, I prefer to wait for the breakout, so I will again be ready to enter a long trade if we get two consecutive hourly closes above $16,000 later.BTC/USDThere 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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