BTC/USD Forex Signal - 23 July 2019

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Bitcoin: Bears look to be breaking down $10,000

Yesterday’s signals were not triggered, as there was no bullish price action at $10,002 when the level was reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered prior to 5pm Tokyo time Wednesday.

Long Trade Ideas

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $9,073 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 $10,426, $10,426 or $10,742.

  • 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.

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BTC/USD Analysis

I wrote yesterday that if the new lower resistance level at $10,742 held then we were likely to see a fall back to the $10,000 area which was very likely to be key support. This was a great call as after struggling to even reach $10,742 the price turned clearly bearish and the bearish action is now seeing Bitcoin trade below the important psychological round number at $10,000. If the price can stay below this level all day, that will be an important bearish sign, suggesting that the price will continue to fall to at least $9,073 which is the next support level.BTCUSDThere is nothing of high importance due today concerning the USD.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.
Learn more from Adam in his free lessons at FX Academy.