SIGNAL FOREX

BTC/USD Forex Signal: Short-Term Bullish Bounce – DailyForex.com


Long-term low at $28,607 in sight.

Last Wednesday’s Bitcoin signals were not triggered, as none of the key identified support or resistance levels were reached that day.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be entered prior to 5pm Tokyo time Thursday.

Long Trade Idea

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $28,607.

  • 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 $31,015, $32,319, or $32,817.

  • 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 Wednesday that there were no key support levels below the current price until $28,607, which was likely to be an extremely pivotal level. If this broke down, I thought that the price of Bitcoin could fall very quickly to $20k or even $10k.

I was looking for a short entry either from a bearish reversal after a retracement to $32,817, or maybe after two consecutive lower hourly closes below the lower trend line of the bearish price channel which currently sits at about $31,547.

This was a great call as $31,547 held, so my approach would have kept intended bears away from a losing short trade. However, I was correct to be looking in the short direction overall, as we have seen the price fall lower over the past week.

Although recent hours have seen a short-term bearish rebound, the technical picture is still very bearish, and the threat of a massive breakdown once the price gets established below that pivotal support level at $28,607 is very real.

I think the best approach here will be either to enter a short trade following two consecutive lower hourly closes below $28,607 or from a bearish reversal from $31,015 if it is reached, which also looks likely to be an important level.BTC/USD

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

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