BTC/USD Forex Signal: Very Bullish

Adam Lemon

Bitcoin is reaching new long-term highs with strong bullish momentum and is now getting within sight of its highest ever historical price at $19,783 which is very confluent with the huge round number at $20,000.

Yesterday’s signals were not triggered as there was no bearish price action at $17,901.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be entered prior to 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 $17.097 or $16,898.

  • 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 Ideas

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $18,411, $19,977, or $20,000.

  • 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 I was generally bullish on Bitcoin and would be even more bullish if the price could get established above the trend line shown in yesterday’s price chart (which was sitting at approximately $16,950).

This was a good call as the price continued to rise strongly over the day to a high just below $18,500 before pulling back sharply. The price bounced back quickly and is now close to retesting yesterday’s high.

Bitcoin is reaching new long-term highs with strong bullish momentum and is now getting within sight of its highest ever historical price at $19,783 which is very confluent with the huge round number at $20,000.

I am generally bullish on Bitcoin, but I note the new resistance level close by at $18,411 and I see this as likely to be today’s pivotal point. If we get two hourly closes above this level later today, I will take a long trade. If there is a bearish failure at that level, there could be a short trade opportunity.

Anyone trading Bitcoin today should be aware that we are seeing very high volatility and reduce position sizes of any Bitcoin trades accordingly.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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