BTC/USD Forex Signal - 18 July 2019

Bitcoin: Bearish channel below $10,000

Yesterday’s signals were not triggered as the bullish price action took place slightly below $9,236 and as there was no bearish price action at $9,863.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be taken prior to 5pm Tokyo time Friday.

Long Trade Ideas

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $9,236 or $8,893.

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

  • Adjust the stop loss to break even once the trade is $50 in profit by price.

  • Take off 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to ride.

Short Trade Ideas

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $10,367 or $10,585.

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

  • Adjust the stop loss to break even once the trade is $50 in profit by price.

  • Take off 50% of the position as profit when the trade is $50 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

I wrote yesterday that as the price was clearly below $10,000 and showing no signs of being strongly bought by long-term buyers, it seemed quite likely that we were going to see still lower prices. However, the price rose a little over the day, but not by much.

The price chart below shows a clear, symmetrical bearish channel which is currently holding the price down below $10,000. That is likely to be today’s pivotal point as it is now confluent with the top of the bearish price channel. A firm break about that would be a bullish sign and would probably attract long-term buyers. A failure there could be a selling opportunity, and if the price breaks below the channel at about $8,340 that would be an extremely bearish sign.BTCUSDThere is nothing of high importance due today concerning the USD.

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.