Bitcoin/Forex Signal - Wednesday, Sept. 6

Yesterday’s signals were not triggered as there was no bearish price action at $4389.93.

Today’s BITCOIN/USD Signals

Risk 0.75% per trade.

Trades must be taken only until 5pm New York time today.

Long Trades

Long entry after a bullish price action reversal on the H1 time frame following the next touch of $4389.93 or $3974.75.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is $50 in profit by price.
Take off 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to ride.

Short Trade 1

Short entry after a bearish price action reversal on the H1 time frame following the next touch of $4779.06.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is $50 in profit by price.
Take off 50% of the position as profit when the trade is $50 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.

BITCOIN/USD Analysis

After peaking just below the psychologically key $5000 level at the end of last week, and making new all-time high prices in the process, Bitcoin is now in its strongest bearish retracement for a while. It is currently finding support at $4000.00 and this area has an excellent chance of holding for three reasons: there is a technical support level at $3974.75, there is a big round number at $4000.00, and this price area makes a 20% drop from its high just below $5000 which was reached only a few days ago. A drop greater than 20% traditionally signifies a bear market, so there should be buyers here, suggesting there is an opportunity to go long. However, should the price break below $3874.75, that would be a bearish sign, suggesting the pullback will last for a while longer, and probably continue down to reach the next area of key support at $3600.00 at least.

Provided that does not happen, Bitcoin can still be said to be in a very strong, long-term bullish trend, and likely to continue to offer excellent profit opportunities on the long side for some time yet.

(Click on image to enlarge)

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