BTC/USD Forex Signal: Short-Term Bullish Movement

Adam Lemon

It may be that the support very close to the big round number at $30,000 provides a good short-term buying opportunity.

Last Monday’s signals produced a profitable short trade from the bearish reversal off the resistance level identified at $35,896.

Today’s BTC/USD Signals

Risk 0.50% per trade.

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

Long Trade Idea

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $30,011.

  • 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 Ideas

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $36,674 or $38,952.

  • 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 Monday that we had probably seen a bearish climax, meaning the price would be very unlikely to recover strongly enough to make a new all-time high above $42,000. I saw a consolidation or falling to lows as likely if the level at $35,896 could hold.

This was a good call, as the price has remained well below $42,000 and consolidated within a wide range between $30,011 and $36,673, and as the resistance I saw at $35,896 held and produced a profitable short trade.

The price is now consolidating within a wide range between $30,011 and $36,674. Bulls are slightly dominant within this consolidation pattern and it may be that the support very close to the big round number at $30,000 provides a good short-term buying opportunity.

I am prepared to trade reversals from either $30,011 or $36,674, as the price is likely to continue to consolidate within this range. However, over the longer term, I see the price as quite likely to head lower.

BTC/USD chart

Concerning the USD, there will be a release of CPI (inflation) data at 1:30 PM London time.

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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