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BTC/USD Forex Signal: Bulls Push Price to 3-Month High

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

The price again is trading above $50k area.

Last Wednesday’s BTC/USD signal was not triggered as there was no bearish price action when the resistance level at $48,675 was first reached that day.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered before 5pm Tokyo time Tuesday.

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $51,364 or $49,161.

  • 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 Idea

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $54,864.

  • 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 Bitcoin was looking bearish as it had become established within a symmetrical bearish price channel. I was looking for a breakdown below the support level at $46,595 or for a long scalp from that level. The level was not reached again after my signal, so the forecast was not useful but was enough to keep out of trouble.

The technical picture has changed dramatically since last Wednesday, with the price breaking bullishly out of the price channel later that day. It has been moving up ever since with relatively strong bullish momentum. Another bullish sign is that it seems to have got well established above the psychological round number at $50k to reach a new 3-month high.

The short-term price action also looks quite bullish so I think it will be best to look for a long trade here today. A retest of the nearby support level at $51,364 followed by a bullish bounce could give that opportunity. The price has plenty of room to rise as there are no obvious resistance levels before $54,864.

BTC/USD

There is nothing of high importance due today concerning the USD. It is a public holiday today in the USA.

Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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