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BTC/USD Forex Signal: Spike Down to $112,000

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 with...

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My previous BTC/USD signal on 15th September was not triggered, as the price did not make a bullish bounce at the support level which it reached.

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Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be entered before 5pm Tokyo time Tuesday.

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Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $113,220, $111,332, or $110,762.
  • 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 bullish price action reversal on the H1 timeframe following the next touch of $114,814 or $116,195.
  • 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.

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 Monday, I thought that the picture had become more bullish

with the support level at $114,771 looking very pivotal.

I was wrong about this – the level was not pivotal, and the price broke below it before rebounding.

The technical picture is looking more bearish. A short while before the time of writing, the price made an unusually strong spike down to the round number at $112,000 before rebounding with almost equal strength.

The question before traders today is whether the price picked up enough buying down there to gain enough bullish momentum to rise from the support level at $113,220 which could remain intact.

As London comes online, we will likely either see the price hold up above this level or print more bearish price action below it. Traders should be able to take their cue from that to decide whether to look for long or short trades.

Ready to trade our free Forex signals? Here is our list of MT4 crypto brokers worth checking out.

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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