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BTC/USD Forex Signal: Bearish Double Top at $86,215?

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

My previous BTC/USD signal on 14th April was not triggered as none of the key support or resistance levels were reached that day.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered before 5pm Tokyo time Thursday.

Long Trade Ideas

  • Long trade entry after a bullish price action reversal on the H1 timeframe following the next touch of $81,203, $78,079, or $74,725.
  • Place 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 Ideas

  • Short entry after a bearish price action reversal on the H1 timeframe following the next touch of $86,215 or $88,958.
  • Place 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 in my previous BTC/USD forecast two days ago that the price seemed to be running out of bullish momentum every time it got near $86,215, so there might be a good opportunity for a short trade here.

This was an excellent call, and it was possible to profit from that, as some hours ago we saw a clear bearish reversal print at that level with a bearish pin bar.

This looks like a bearish double top pattern, and the price has been falling quite steadily since that level was rejected.

However, the price may now be finding some support where it last made a meaningful bounce, in the $83,000 area.

Stocks are subdued today, and this may well also be the case for Bitcoin, so we might not even see any more touches of key support or resistance levels today.

I think that either a short trade from another failure at $86,215 or even a long trade from a bullish bounce at $81,203 could be good entries. I expect the price to consolidate within this area until at least there is any more news about any changes to the new US tariffs.

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There is nothing of high importance due today regarding Bitcoin. Concerning the US Dollar, there will be a release of US Retail Sales data at 1:30pm London time followed by the Chair of the Federal Reserve speaking at 6:30pm.

Ready to trade our daily Forex signals on Bitcoin? Here’s our list of the best MT4 crypto brokers worth reviewing.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

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