SIGNAL FOREX

BTC/USD Forex Signal: Bulls Slowly Gaining – DailyForex.com


If the price can close above $20,000 at the end of a day, it will be worth trying to take a long trade to exploit the breakout as the price could rise much higher quickly.

Last Thursday’s signals were not triggered, as there was no bearish price action when the resistance level at $19,314 was first reached.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered prior to 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, or $17,537.

  • 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 $19,429, $19,864 or $20,000.

  • 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 technical picture had become a little more bearish, with the price threatening to break below the bearish trend line. I was right to be more pessimistic about the price breaking to new a high as it did not, and the trend line was broken down the next day.

As I have been saying over the past few days, this price area near $20,000 remains very pivotal for Bitcoin.

If the price can close above $20,000 at the end of a day, it will be worth trying to take a long trade to exploit the breakout as the price could rise much higher quickly. On the other hand, a major bearish reversal from a double top could be a good long- to medium-term short trade.

The technical picture, after looking more bearish, has become a bit more bullish over recent hours, with the short-term price action showing buying slowly pushing the price higher into the nearby resistance level at $19,430. If the price makes a strong failure to break this level, it could produce a good longer-term short trade. If the price gets established above it, that would be a bullish sign, but I do not want to take any long trades here until we get a New York close above $20,000. Bulls should have the patience to wait for this. Better to lose a few dollars at the start of a breakout trade than get into a fake breakout repeatedly.

It is worth keeping a close eye on Bitcoin right now, especially as we are at the end of a calendar year and so close to both the all-time high and a big round number at $20,000 – but bulls will be best off showing patience and discipline right now.

BTC/USD

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

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