BTC/USD Forex Signal: Bullish Breakout Continues to Advance

Adam Lemon

We are likely to see the final climax of this bullish move after Christmas and not before.

Last Thursday’s signals were not triggered, as there was no bearish price action when the price first reached $22,500.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must 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 $23,255, $22,029, or $20,910.

  • Place the stop loss $100 below the local swing low.

  • Move the stop loss to break even once the trade is $100 in profit by price.

  • Take off 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to run.

Short Trade Idea

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $25,000.

  • Place the stop loss $100 above the local swing high.

  • Move the stop loss to break even once the trade is $100 in profit by price.

  • Take off 50% of the position as profit when the trade is $100 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 last Thursday that the price had risen by approximately 10% over the past two days, so a retracement or consolidation would not be a surprise. As long as stops were kept wide respecting the high volatility of Bitcoin, it could still be possible to enter long and sit tight. I thought that an alternative for bulls could be to wait until there was a retracement to the new support at $20,910 or even just any reasonably deep retracement above that which then made a turn with bullish price action.

This was a pretty good call as the pace of the rise slowed, with a retracement greater than a day’s recent average true range, but the price has moved higher still reaching a new all-time high on Saturday (Bitcoin trades over weekends) just above $24,000. So, holding on long with a wide stop would have paid off, or even going long after a relatively deep retracement would also have worked.

There is no solid reason not to be bullish on Bitcoin (at least technically) – the price is continuing to print higher and higher new levels of support and continuing to break to new highs at least every two days or so. The price is trading in blue sky and has lots of speculative interest. Of course, the pace of the advance is very rapid, but I feel that we are likely to see the final climax of this bullish move after Christmas and not before, so the bullish run feels to me as if it has further to go.

I am very happy not only to buy a bullish bounce at any support level, but I am also prepared to buy breakouts to new all-time high prices as long as the price can hold up there for at least a couple of hours. How far Bitcoin could go is anyone’s guess – of course, it may be that the big round number and psychological level at $25,000 that acts as a barrier due to profit-taking being likely in that area.

BTC/USD chartThere is nothing of high importance scheduled 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

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.