BTC/USD Crypto Signal
Last Thursday’s signals were not triggered, as none of the key levels were ever reached that day.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered until 5pm Tokyo time today, over the next 24-hour period.
Long Trades
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Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,436 or $8,166.
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Place the stop loss 1 pip below the local swing low.
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Move the stop loss to break even once the trade is $200 in profit by price.
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Remove 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to run.
Short Trades
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Short entry after a bullish price action reversal on the H1 time frame following the next touch of $8,593 or $8,893.
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Place the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is $200 in profit by price.
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Remove 50% of the position as profit when the trade is $200 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 had a bearish bias last Thursday as the technical picture was dominated by a strong, long-term descending trend line, and because there was a lot of room for the price to fall further before it hit any supportive levels. I was partially correct, as the price did fall quite heavily for most of that day, before turning bullish as the Asian session began. Since then the price has moved up steadily, turning resistant areas into new support and breaking quite strongly through the resistant trend line. This has created a much more bullish technical picture, with only a single resistance level preventing the price rising as high as the $8,900 area. At the time of writing, the price is trapped narrowly between two levels. I would have a bullish bias if the price can break out convincingly above $8,593.
There is nothing due today concerning the USD.
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.
