SIGNAL FOREX

BTC/USD Forex Signal: Bullish Recovery – DailyForex.com


The bullish rise really seems to have run out of steam at the area of resistance between $18,674 and $18,882, where we now see early signs of a bearish reversal that may well be giving a short trade opportunity right now.

Last Thursday’s signals were not triggered, although the low of the day was very close to the support level identified at $16,173.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken before 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 $18,330, $17,900, $17,537, or $17,078.

  • Place the stop loss $50 below the local swing low.

  • Move the stop loss to break even once the trade is $50 in profit by price.

  • Take off 50% of the position as profit when the trade is $50 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 time frame following the next touch of $18,674, $18,882, or $19,977.

  • Place the stop loss $50 above the local swing high.

  • Move the stop loss to break even once the trade is $50 in profit by price.

  • Take off 50% of the position as profit when the trade is $50 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 last Thursday that the price had made a sharp and significant downwards movement after falling from a recent long-term high price. I thought that the meaningful bullish movement would be over for a while at least, and I wanted the price to fall further before looking for a new long trade as I thought the buying opportunity would come at the support level identified at $15,507 because it was near a major round number and also it marked the start of a cluster of support levels which seemed technically likely to act together as effective support.

It seems this may not have been a very good call, as the price found what seems to be a solid bottom just above a higher support level, the one at $16,173. However, after rising firmly from there, the bullish rise really seems to have run out of steam at the area of resistance between $18,674 and $18,882, where we now see early signs of a bearish reversal that may well be giving a short trade opportunity right now.

I take a cautious bearish bias right now but would monitor any trade carefully on short-term time frames, as there are several support levels which may well halt the downwards movement. On the other hand, if the price does get established above $18,882 later, that will be a bullish sign suggesting we may see a test of the all-time high price just below $20,000.

BTC/USD

There is nothing of high importance due today regarding the USD.

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