BTC/USD Forex Signal - Wednesday, March 21

Yesterday’s signals were not triggered, as there was no bearish price action at $8,800.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm Tokyo time, over the next 24-hour period only.

Short Trades

Short entry after a bearish price action reversal on the H1 time frame following the next touch of $9,420 or $10,131.

Place the stop loss 1 pip above the local swing high.

Move the stop loss to break even once the trade is $200 in profit by price.

Remove 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to run.

Long Trades

Long entry after a bullish price action reversal on the H1 time frame following the next touch of $8,800 or $8,092.

Place the stop loss 1 pip below the local swing low.

Move the stop loss to break even once the trade is $200 in profit by price.

Remove 50% of the position as profit when the trade is $200 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 had no directional bias yesterday, as I did not see much to choose between the bullish and the bearish cases. The bulls are a little stronger now, as the price was able to advance and break up above the former resistance level at $8,800 which has now probably flipped to become new support. The short-term trend is bullish, so I would be happier taking a long trade from a bullish bounce at $8,800 than a short trade from a bearish bounce at $9,420.

Regarding the USD, there will be a release of Crude Oil Inventories at 2:30pm London time, followed by the FOMC Statement, Economic Projections, and Federal Funds Rate at 6pm, followed later by the usual press conference.