BTC/USD Forex Signal: Strongly Bullish

Adam Lemon

Another new long-term high price.

Yesterday’s signals were not triggered as none of the key support or resistance levels identified were reached yet.

Today’s BTC/USD Signals

Risk 0.50% per trade.

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

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $16,173, $15,507, $15,144, or $14,946.

  • 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 the price had reached a new multi-month high over the past few days and showed every indication that it was beginning another firm bullish movement. A key level to watch was $16,145 as if the price remained above this level, the outlook will be bullish.

This was a good call as the price never got below $16,145 and rose quite strongly over the day.

Every indicator is bullish, and Bitcoin is even standing out as one of the most strongly trading instruments against the weak U.S. dollar breaking to new long-term high prices.

The price still has some way to go before hitting the nearest major resistance level at $17,901 so it has plenty of room to rise further.

The only technical obstacle remaining to bulls is the ascending trend line shown within the price chart below, which in recent hours seems as if it may be holding the price, although as the rise is strong anyway, it is hard to tell.

I am generally bullish on Bitcoin and would be even more bullish if the price could get established above the trend line shown below.

Even after a bearish retracement, I would be very interested in looking for a long trade from a bullish bounce which may set up at $16,173.BTC/USDConcerning the USD, there will be a release of Retail Sales data at 1:30pm London time.

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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