BTC/USD Forex Signal: Record High Price in Sight

Adam Lemon

The technical picture is now much more bullish as the price trades above the big round number at $60k and just below its record high between $61 and $62k.

Last Wednesday’s Bitcoin signals produced a nicely profitable long trade entry from the strong bullish bounce at the support level at $56,447 which occurred that day.

Today’s BTC/USD Signals

Risk 0.50% per trade.

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

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $58,450 or $56,447.

  • 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.

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 Wednesday that we had very choppy, consolidative trading below $60k which suggested topping before a bearish breakdown. I saw the support level at $56,447 as a classic neckline.

I was therefore looking to take either a long trade from a bullish bounce there, or a short trade if we get two consecutive hourly closes below that level. I thought that a breakdown was more likely.

I was correct to see this level as pivotal and it gave a very nice long trade entry from a bouncing, bullish engulfing candlestick on the hourly chart which gave good profit.

The technical picture is now much more bullish as the price trades above the big round number at $60k and just below its record high between $61 and $62k. It is true we are seeing at the time of writing a bearish hourly candlestick which looks as if it is rejecting $61k which would make a bearish double top. Therefore, an hourly close above $61k could be a good signal to enter a long trade which could blow through to an all-time high, and then the price would be free to potentially rise much further through blue sky. I will take a bullish bias here if that sets up and I will not look for any short trades today.

BTC/USD

Concerning the USD, there will be a release of the FOMC Meeting Minutes at 7pm 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

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.