BTC/USD Forex Signal: Very Bullish

Adam Lemon

Bullish acceleration beyond price channel.

Yesterday’s signals were not triggered, as there was no bearish price action when the resistance level at $14,058 was first reached.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered 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 $14,256, $13,983, or $13,719.

  • 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 $14,058.

  • 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 outlook looked somewhat bullish still despite the U.S. presidential election uncertainty, and again, a bullish break above $14,058 would be a further bullish sign.

This was a good call and the technical picture now looks even more bullish, with the price breaking and invalidating resistance.

The price chart shown below is dominated by a bullish price channel and in the past few hours we have seen a bullish breakout from that channel which is an even more bullish sign. The most bullish sign of all, of course, is that the price of Bitcoin has now reached its highest in almost three years. The short-term price action over the past few hours also suggests higher prices are going to be reached today, with the upper trend line of the price channel possible acting as bullish support.

The only bearish element I see is that we have a big psychological level and major round number ahead at $15,000.

I am bullish on Bitcoin and will take a long trade from a bullish bounce following a retracement to $14,259 if it sets up later.BTC/USDRegarding the USD, counting and result releases are continuing in the U.S. presidential election, and the FOMC Statement will be released at 7pm London time followed by the usual press conference half an hour later.

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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