BTC/USD Forex Signal: More Bullish Movement

Adam Lemon

The price has now seemingly been established above the former resistance level at $23,255 which is now acting as support which is a bullish sign.

Yesterday’s signals were not triggered as there was no bearish price action when the price first hit the resistance level at $23,255.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken prior to 5pm Tokyo time Thursday.

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 yesterday that the price had made a meaningful retracement and had become stuck between firm support at $22,029 and strong resistance at $23,255.

I thought that the long-term picture remained bullish, but that it may be wise to go flat and stand aside and wait to see which broke first, the nearby support or the nearby resistance. However, I was still ready to take a long trade at a bounce from key support.

This was an OK call as my slight bullish bias seems to have been justified, as the price has now seemingly got established above the former resistance level at $23,255 which is now acting as support – this is a bullish sign.

There are no obvious resistance levels above the current price except maybe the all-time high just above $24,000 and the huge major round number and psychological level at $25,000.

I am ready to take a long trade from a bullish bounce at any key support level, or a short trade from an unusually strong bearish reversal which may happen later at $25,000 if it is reached.

BTC/USD chart

There is nothing of high importance due 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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