BTC/USD Forex Signal: Bitcoin Recovers

  


$47,532 will form either a bullish breakout or a bearish double top.

Last Monday’s BTC/USD signal produced a nicely profitable long trade from the bullish bounce at the key support level identified at $43,836.

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 $46,867, $46,381, or $43,836.

  • Put the stop loss $100 below the local swing low.

  • Adjust the stop loss to break even once the trade is $100 in profit by price.

  • Remove 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to ride.

Short Trade Idea

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

  • Put the stop loss $100 above the local swing high.

  • Adjust the stop loss to break even once the trade is $100 in profit by price.

  • Remove 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to ride.

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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.

BTC/USD Analysis

I wrote last Monday that the picture looked bearish, but bears had a big hurdle in their way – the very strong support level at $43,836 which looked likely to produce some minor bullish moves before it eventually breaks down. I thought that scalping long trades from bullish bounces off $43,836 were unlikely to pay off.

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I was correct about the importance of the horizontal level at $43,836 but I was wrong about direction – the level held firmly and produced a bullish inside bar break which has sent the price up to the key resistance level at $47,532. This has halted the advance over recent hours and the big question now is whether this resistance level will hold and produce a bearish double top formation or be overcome by the price which would then advance to new multi-week highs.

If the price breaks down below $46,171 that will be a bearish sign.

I will be ready to enter a short trade if we get a firm rejection of the resistance level at $47,532 later today.

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BTC/USD

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



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