BTC/USD Forex Signal: More Bullish Above $91,589

My previous BTC/USD signal on 24^th December might have produced a losing long trade from the bearish rejection of the resistance level at $87,947.

Today’s BTC/USD Signals

• Risk 0.50% per trade.
• Trades may only be entered before 5pm Tokyo time Tuesday.

Long Trade Ideas

• Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $91,589, $90,841 or $89,019.
• Place 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 Ideas

• Short entry after a bullish price action reversal on the H1 timeframe following the next touch of $94,196, $97,058, or $100,469.
• Place 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.

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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

In my last BTC/USD forecast last Christmas Eve, I thought we were likely to see choppy trading, with a bearish reversal at $90,184 or a bullish reversal at $85,390 being the only trades worth looking at if they set up.

I was correct about choppy trading, or at least trading within a narrow range, with neither of those levels reached over the day.

The technical picture has become more bullish, with the price rising in quite an orderly way over the past 5 days. Other risky assets are also seeing a bit of a bid, so it makes sense that Bitcoin is rising right now, but it also seems to have put in quite a strong bottom, likely attracting long-term buys the closer it gets to $80,000.

I think the support at $91,589 looks like it is clearly going to be today’s pivotal point – bulls have a lot of room to rise from here, as there are no resistance levels below $95,000. So, a retracement to that level and an immediate bullish bounce could produce a good long trade entry.

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