BTC/USD Forex Signal

Adam Lemon DailyForex.com

Yesterday’s signals produced a profitable short trade from the bearish engulfing candlestick rejecting the resistance level identified at $14,953. It is probably a good idea to take more profit as the price may be bouncing at the bullish supportive trend line shown in the price chart below.

Today’s BTC/USD Signals

Risk 1.00% per trade.

Trades must be taken before 5pm Tokyo time, during the next 24 hours only.

Long Trade

Go long after a bullish price action reversal on the H1 time frame following the next touch of $11,815.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is $200 in profit by price.
Take off 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to ride.

Short Trades

Go short after a bearish price action reversal on the H1 time frame following the next touch of $14,953 or $15,548.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is $200 in profit by price.
Take off 50% of the position as profit when the trade is $200 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

There is a very significant technical development which has led to a worrying and unclear situation: the price has continued in its medium-term downwards trend, and has hit a very key supportive trend line as a third touch, which is important. However, although there is a bullish bounce here, it is not clear, even though we cannot really say this trend line has broken down. This is a pivotal moment for Bitcoin, I expect the price will either recover well and start to break the bearish structure, but that is not even close to happening yet, or continue down to the next crucial support level near $11,000. Another bearish sign is that the resistance levels are holding on retraces.

Bitcoin looks bearish, however it might be finding support at about $13,000 where we now have a double bottom formation. I have no directional bias.

Regarding the USD, there will be a release of PPI data at 1:30pm London time.

Author

Adam Lemon

DailyForex.com

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.

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