BTC/USD Forex Signal: Bitcoin Looking Heavy

  


The key support at $43,836 is looking very significant.

Last Monday’s BTC/USD signal produced a nicely profitable long trade from the bullish bounce at the key support level identified at $51,364.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken 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 $43,836 or $40,922.

  • 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 Idea

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $47,532, $48,065, or $49,161.

  • 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.

See also  Bitcoin price returns above $47K as crypto market shrugs off Binance KYC news

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.

Advertisement

BTC/USD Analysis

I wrote last Monday that Bitcoin was showing several bullish signs, such as trading above $50k at a new 3-month high. I was looking for a long trade especially from a bullish bounce at $51,364 and this is exactly what we got – this was a very good and profitable call.

The technical picture has changed dramatically again over the past week, following last Tuesday’s 17% drop which was made in just a few hours. This strong downwards movement bounced off the key support level at $43,836 which has continued to hold. After an initial rebound, the price has settled to trade in a heavy, bearish way over the past six days.

See also  British Pound Forms Big Hammer

The picture looks bearish, but bears have a big hurdle in their way – the very strong support level at $43,836 which looks likely to produce some minor bullish moves before it eventually breaks down. The next big move will most likely be after that bearish break, so I will be happy to enter a short trade following two consecutive hourly closes below that level.

If this were a Forex currency pair I would also be prepared to look at scalping long trades from bullish bounces off $43,836 but due to the wider spreads in Bitcoin, this probably would not be a good idea.

BTC/USD

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

See also  Dollar on the weaker side of things amid retreat in Treasury yields



Read more here