BTC/USD Forex Signal: Back Below $40K

Last Wednesday’s Bitcoin signals produced a losing long trade from the bullish bounce which took place at the support level identified at $38,799 (BITCOMP).

blue and red line illustration

Unsplash

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be entered prior to 5pm Tokyo time Tuesday.

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $38,653, $37,633, or $36,656.

  • Put the stop loss $100 below the local swing low.

  • Adjust the stop loss to break even once the trade is $100 in profit by price.

  • Remove 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 time frame following the next touch of $40,625, $41,479 or $46,595.

  • Put the stop loss $100 above the local swing high.

  • Adjust the stop loss to break even once the trade is $100 in profit by price.

  • Remove 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 last Wednesday that although Bitcoin was breaking to new highs, the price really needed to get established above $40k and the key resistance level above that at $42,263 before it would really be able to take off.

I was therefore ready to take a bullish bias if we had gotten two consecutive higher hourly closes today above $40,600 or if we got a bullish bounce at $38,800.

This was a great call, as although neither level was reached over the remainder of that day, the level at $40,600 was a clear pivotal point as once we got a close above it later in the week, we immediately saw a more sustained price rise.

1 2
View single page >> |

Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.