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BTC/USD Forex Signal: Hinting at Bearish Double Top Formation

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.

My previous BTC/USD signal on 17th September was not triggered, as there was insufficiently bearish price action when the two resistance levels were first reached that day.

Today’s BTC/USD Signals

  • Risk 0.50% per trade.
  • Trades must be entered before 5pm Tokyo time Thursday.

BTC/USD Signal Today - 25/09: Bearish Double Top? (Chart)

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 timeframe following the next touch of $62,349, $61,338, or $59,401.
  • 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 run.

Short Trade Ideas

  • Go short after a bearish price action reversal on the H1 timeframe following the next touch of $64,613, $65,306, or $67,025.
  • 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 forecast a little more than a week ago that Bitcoin was looking more bullish so I was looking for a long trade above $59,401. This would have produced a winning trade over the day and would still be in profit now.

Bitcoin has profited from the risk-on rally of recent days triggered by the 0.50% rate cut at the US Federal Reserve last week, as Bitcoin is a “risky” asset.

Recent hours have however seen the price begin to retreat from an area of resistance overhead which was pivotal the last time it was reached in August, triggering a major bearish move.

This suggests that we may see a bearish retracement now, but so far it is quite small.

The best I can say is that $64,613 looks likely to be today’s pivotal point, so a long trade above it might work, or a short trade if we get another failed test of this level later.

Bitcoin isn’t a standout asset in the market right now, there are other things like Gold, stocks, and the British Pound which are probably going to be more attractive to traders.

There is nothing of high importance due today regarding Bitcoin or the US Dollar.

Ready to trade our free Forex signals on Bitcoin? Here’s our list of the best MT4 crypto 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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