Bitcoin/USD Forex Signal - Tuesday, September 12

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s BITCOIN/USD Signals

Risk 0.75% per trade.

Trades may only be entered until 5pm New York time today.

Long Trades

Go long after a bullish price action reversal on the H1 time frame following the next touch of $3974.75 or $3600.00.

Put the stop loss 1 pip 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 Trades

Go short after a bearish price action reversal on the H1 time frame following the next touch of $4380.89 or $4779.06.

Put the stop loss 1 pip 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.

BTC/USD Analysis

I wrote yesterday that the $4000.00 area has become very key: if it breaks, then we are in a Bitcoin bear market with a fall of more than 20% off the all-time high. Alternatively, if it holds, it could be a great buying opportunity.

Happily for bulls, the price has risen strongly from the lows near $4000.00, and has also convincingly broken up past the first bearish trend line shown in the chart below. Although it is now running into resistance which starts being felt at about $4350.00, Bitcoins looks more bullish now without any doubt. If the price goes on to break up above $4380.89, that will be an even stronger bullish sign.