BTC/USD Forex Signal: Buying Below $60k

Adam Lemon

There is selling pressure above $63k.

Last Monday’s BTC/USD signal produced a losing long trade from the bullish bounce off the identified support level at $61,218.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken before 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 $61,738 or $58,906.

  • 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 $63,763 or $64,368.

  • 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 odds seemed to be in favour of a break above $62,558 and an advance to test the all-time high price just below $65k so I was looking to buy from any bullish bounce which might happen at either of the two closest support levels.

This was a good call as the price rose quite strongly from Monday’s low over the next two or three days to eventually reach a new all-time high price, although unfortunately the first entry from the higher support level did not work, and the low of the day was just a few dollars above the lower support level at which I was looking to buy from - $58,906.

Although the price did make a record high, it was not able to stay up in that one for more than a few hours before it fell quite hard, making a bearish retracement of about 10%. A few hours ago, the short-term price action turned more bullish as the price managed to pop up above the former resistance level at $61,738. If the price can hold up above this level, which may now have become support, it will be a bullish sign suggesting that the price is ready to make a significant rise again. Therefore, I would take a long trade from another bullish bounce off this level. If the price breaks down below $61,738 instead, that will be a bearish sign.

My overall analysis on Bitcoin suggests that bulls may have a slight upper hand right now, and that longer-term traders and investors have taken opportunities to buy below $60k and the buying in this zone may persist. However, we also see consistent selling pressure above $63k, so it may be that any bullish movement we get today above $63k does not last for long.

BTC/USD

Regarding the USD, there is nothing of high importance scheduled today.

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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