BTC/USD Forex Signal: New Record High Above $28K

Adam Lemon

Yesterday’s signals were not triggered, as the price unfortunately did not retest the support level at $26,012.

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 $27,487, $26,012, $25,000, or $24,016.

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

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

  • Remove 50% of the position as profit when the trade is $100 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 $30,000.

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

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

  • Remove 50% of the position as profit when the trade is $100 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 support level I had identified at $26,012 looked very pivotal, with the odds seeming to still be weakly with the bulls.

This was a great call as although the initial bullish bounce there during the Asian session yesterday seemed to be weak, the bounce held and the price eventually after some reluctance began to rise.

The rise has continued and in recent hours the price has made another new record all-time high at $28,600. There is new higher support confluent with the psychological quarter-number at $27,500, which looks like a good level at which to look for a buy on a retracement.

Bitcoin has almost tripled in value over 2020, having made huge advances this month. We are in the final days of the calendar year, a time at which speculative rallies often make major climaxes. With the price hitting all-time highs, these factors give every reason to be bullish on Bitcoin, while being aware that the rise cannot last forever and that volatility is very high, so trade position sizing here should be small, and tight hard stop losses should be used when trading or even investing in Bitcoin.

The rise looks likely to continue to $30k and there might be some resistance there due to profit-taking at this round number.

I have a bullish bias on Bitcoin today.

EUR/USD chart

There 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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