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BTC/USD Forex Signal: Bearish Short-Term Price Action

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.

BTC/USD exhibits bearish short-term trends; potential pivotal zones could dictate trading strategies. Focus on key support/resistance levels for entry points.

My previous BTC/USD signal on 19th March was not triggered as none of the key support or resistance levels were hit that day.

Today’s BTC/USD Signals

  • Risk 0.75% per trade.
  • Trades must be entered before 5pm Tokyo time Thursday.

BTC/USD Signal Today- 27/03: Bearish Short-Term Price Action (Chart)

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 timeframe following the next touch of $69,436, $68,852, or $66,480.
  • Place 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 run.

Short Trade Idea

  • Go short after a bearish price action reversal on the H1 timeframe following the next touch of $72,212.
  • 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 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.

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BTC/USD Analysis

I wrote in my previous BTC/USD analysis on Tuesday last week that the technical picture was now considerably more bearish as the price fell with no obvious support levels until about $60,000 was reached. This was a great call as it gave an immediate short trade entry that went below $61,000 that day, although it never quite reached $60,000.

The price of Bitcoin has basically recovered since then, but now looks like it has topped out at about $71,000 some way below the recent all-time high near $74,000. The price is currently heading lower, and it looks as if the potentially supportive zone between $69,436 and $68,852. I think its likely this zone will be reached, and the zone should be pivotal today. That means two consecutive hourly closes below that zone could be a good short trade entry signal targeting the next support level at $66,480. On the other hand, if the zone produces a bullish bounce, especially if $68,852 is rejected, that could be an attractive long trade entry. Personally, I want to see Bitcoin make a new high about $74,000 before taking any long trades, especially in this area after the price has been rising for a few days.   

Ready to trade our daily Bitcoin signals? Here’s our list of the best cryptocurrency brokers worth reviewing.

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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