BTC/USD Forex Signal: Briefly Reaches 18-Month High Price

Due to the long-term bullish trend and the bullish short-term price action, I will look for long trades in Bitcoin, with the market environment currently supporting such risk-on trades.

My previous BTC/USD signal on 28th November was not triggered as there was no bearish price action at the first touches of the two nearest resistance levels that day.

 

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be taken prior to 5pm Tokyo time Friday.

 

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 timeframe following the next touch of $37,666 or $37,316.
  • Put the stop loss $100 below the local swing low.
  • Move the stop loss to break even once the trade is $100 in profit by price.
  • Take off 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to ride.

 

Short Trade Ideas

  • Go short after a bearish price action reversal on the H1 timeframe following the next touch of $38,659 or $39,371.
  • Put the stop loss $100 above the local swing high.
  • Move the stop loss to break even once the trade is $100 in profit by price.
  • Take off 50% of the position as profit when the trade is $100 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 in my previous BTC/USD analysis two days ago that the price was continuing its wide, bullish consolidation. I was correct about this, but the levels I have were not useful.

The wide bullish consolidation is continuing, with the price briefly making a new 18-month high yesterday but failing to hold on to any meaningful gains.

I thought that it would take a daily close above $38,000 to trigger a truly strong bullish move and that seems to have been a good call as we have not had a daily close above that level in recent days.

Due to the long-term bullish trend and the bullish short-term price action, I will look for long trades in Bitcoin, with the market environment currently supporting such risk-on trades.

One approach could be going long after a daily close above $38,000 or the next resistance level at $38,659.

I also see the support level at $37,316 as likely to give a strong bounce if reached today, so that could be interesting for shorter-term traders, or swing traders using pullback trading strategies.

(Click on image to enlarge)

BTC/USD


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