BTC/USD Crypto Signal
Yesterday’s signals were not triggered, as there was no bearish price action at $6,563.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo time, over the next 24-hour period.
Long Trade
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Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,563.
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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.
Short Trades
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Go short after a bearish price action reversal on the H1 time frame following the next touch of $6,563.
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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.
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 Bitcoin was not only looking more bullish, but that if the support at $6,268 held the price was likely to rise to test the next resistance level at $6,563. This turned out to be a good call, with the price shooting up quickly and breaking the former resistance level cleanly. I see Bitcoin as even more bullish now, with a possibility that we have seen a long-term bottoming out not far above the psychologically important $5,000 area. If the former resistance at $6,563 holds for a while, we are likely to see another upwards push, so right now I take a mildly bullish bias. I would be more strongly bullish above $6,805 as we have not seen a true higher low yet.
There is nothing important 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.
