SIGNAL FOREX

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


BTC/USD: Strong resistance likely at $7,228

Yesterday’s signals were not triggered as none of the key levels identified have been reached yet.

Today’s BTC/USD Signals

Risk 0.50% per trade.

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

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,418, $6,089, or $5,683.

  • 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.

  • Remove 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 $7,228, $7,670 or $8,004.

  • 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.

  • Remove 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 yesterday that I would take a weakly bullish bias today if we had gotten a bullish bounce from a pullback to the support level at $6,418. This could have been a good call as the price has continued to rise, but unfortunately the price never quite reached that support level.

The technical picture is now a little more bullish, but the next resistance level above looks strong, so it is quite likely to struggle to break that if reached.

There has been a recovery in risk sentiment over recent hours as the U.S. announces a $2 trillion rescue package which has helped hold up the Bitcoin price, but how long that improvement will last is a good question – I think not for very long, so I see a short-term long trade from the nearest support as a good potential trade but I see a medium-term short trade from a reversal at $7,228 as an even better opportunity if it sets up today.BTCUSDThere is nothing of high importance scheduled today regarding the USD.

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