My previous BTC/USD signal on 9th September produced an excellent, profitable long trade from the bullish rejection of $110,762.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered prior to 5pm Tokyo time Tuesday.
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Long Trade Ideas
- Go long after a bullish price action reversal on the H1 timeframe following the next touch of $114,771, $113,220, or $111,332.
- Put 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
- Go short after a bullish price action reversal on the H1 timeframe following the next touch of $117,399 or $120,055.
- Put 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.
BTC/USD Analysis
In my recent BTC/USD forecast last Tuesday, I thought that the picture had become more bullish due to the cluster of support levels between about $110,000 and $111,000 which looked likely to provide a solid floor to the current price action.
This was a good and profitable call, although I had expected the first level to hold – it was actually the bounce off the support level below that which gave the nice long trade that day.
This bullishness has continued, with the support level at $114,771 now looking very pivotal and extremely likely to be today’s pivotal point.
The main question for bulls is whether to hope for a retest and bounce at $114,771 before going long, or to just go long after a breakout above $117,399. Either is a valid strategy, targeting $120,000: the big round number just below the next resistance level at $120,055.
The bullishness is driven by non-crypto specific factors and is linked to the new highs we are seeing in US stocks and in precious metals. This is a good environment to be trading Bitcoin long.
There is nothing of high importance due today regarding either Bitcoin or the US Dollar.
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