BTC/USD Forex Signal - 30 July 2019

Adam Lemon

Bitcoin: Bearish trend with heavy resistance

Yesterday’s signals were not triggered, as none of the key levels were reached yet.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered before 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, $8,893, or $8,610.

  • 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 $9,660, $9.924, or $10,204.

  • 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 we had a more bearish picture but there was always the chance of long-term buyers stepping in, and that the support level at $9,073 may be very strong. I also thought that the level at $9,660 was likely to be the first pivotal point which would give us an indication of the major direction of movement over the coming day. This was a pretty good call overall as the level at $9,660 held and although there has not been much movement over the past 24 hours, the direction is slightly down.

There is no question we are getting a more decisively bearish picture here. There is a lot of pressure weighing down on the price: two medium-term bearish trend lines, which can be seen in the price chart below, and four horizontal resistance levels between $9,660 and $10,359. I think any of these could provide a good short trade entry opportunity. Things will get very interesting as both of these bearish trend lines get established below the psychological $10,000 level.

I would take a bearish bias today following a solid reversal following a retracement to any of the resistance levels outlined above.BTCUSDConcerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time.

About the Author
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.
Learn more from Adam in his free lessons at FX Academy

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