BTC/USD Crypto Signal
Yesterday’s signals were not triggered, as there was no bearish price action at $9,420.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm Tokyo time, during the next 24-hour period.
Short Trade
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Short entry after a bearish price action reversal on the H1 time frame following the next touch of $10,131.
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Put the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is $200 in profit by price.
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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.
Long Trades
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Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,192, $9,000, or $8,679.
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Put the stop loss 1 pip below the local swing low.
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Adjust the stop loss to break even once the trade is $200 in profit by price.
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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
I wrote yesterday that I had a bullish bias, as the price was continuing to make new multi-week high prices. This has paid off well, as the price rose strongly over the day to make a new high just below $9,800 which invalidated the former resistance level at $9,420. The price has flipped an old resistance level at $9,192 to become new higher support, and it seems to have halted a sharp move down in the Asian session. It looks like the price will rise over coming hours. It may not happen today, but a test of the psychologically key $10,000 area looks likely to happen soon. It will be interesting to see how the price will behave there. I maintain my bullish bias.
Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm 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.
