SIGNAL FOREX

BTC/USD Forex Signal: Bulls May be Breaking $40k – DailyForex.com


Bitcoin is very bullish above $42,263.

Last Monday’s Bitcoin signals were not triggered as there was no sufficient price action when support and resistance levels were first reached to justify a trade entry.

Today’s BTC/USD Signals

Risk 0.50% per trade.

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

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $38,799, $37,633, or $36,656.

  • Place 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

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $42,263 or $46,595.

  • Place 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 last Monday that we had seen a strong rise by Bitcoin of approximately 10% in value to hit a 1-month high price just below $40k, in just a few hours. I saw this as a bullish sign. However, I thought that this upwards thrust may be done for the time being, seeing $40k as a pivotal point, but I remained interested in buying a dip.

This was a good call, as the price failed again at $40k so the level did turn out to be pivotal. The price also went on to make a bullish bounce following a dip and at the time of writing is now challenging the round number at $40k again.

There is always a lot of excitement around Bitcoin when it breaks to new high prices even if such highs are only medium-term, as is the case here today, and this can cause strong rallies which makes the case for a bullish approach to Bitcoin today. However, the price needs to get established above $40k and the key resistance level above that at $42,263 before it will really be able to take off.

There is plenty of room for Bitcoin to rise all the way to $46,595 after it breaks $42,263. The line of least resistance is certainly upwards, as we have several support levels not far below the current price area.

I will take a bullish bias if we get two consecutive higher hourly closes today above $40,600 or if we get a bullish bounce at $38,800.

BTC/USD

Concerning the USD, the FOMC will release its statement and federal funds rate at 7pm London time.

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