BTC/USD Forex Signal - Thursday, August 10

Yesterday’s signals were not triggered as there was no bullish price action at $3327.31.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered between 8am and 5pm New York time today.

Long Trade 1

· Go long after bullish price action on the H1 time frame following the next touch of $3000.00.

· Put the stop loss 1 pip below the local swing low.

· Move the stop loss to break even once the trade is $50 in profit by price.

· Remove 50% of the position as profit when the trade is 50 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

We still have an extremely bullish situation, with the price recently trading in blue sky at new all-time highs, thanks to a huge amount of public interest in investing or speculating in this crypto-currency on the long side. There is a widespread feeling among analysts that this pair is in a dangerous bubble which could burst spectacularly. This may be the case, but that does not mean that traders cannot enjoy the party while it lasts, provided a hard stop loss and low leverage are used.

Technically, we are now seeing a healthy and strong upwards movement resuming after yesterday’s spike down to the $3200.00 area. This took out a key support level, so it is difficult to pinpoint a dip where the pair should be bought before $3000.00. However, the outlook is strongly bullish so buying on short-term dips generally is probably a good strategy to use right now, provided stops and low leverage are used.

(Click on image to enlarge)

BTCUSD