BTC/USD Forex Signal - 22 August 2019

Bitcoin: Bearish but supportive inflections nearby

Yesterday’s signals were not triggered as there was no bullish price action at $9,991.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken prior to 5pm Tokyo time Friday.

Long Trade Idea

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $9,073.
  • 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 $10,270, $10,562, or $10,921.
  • 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 the technical picture had become more bearish, and it looked as if $9,991 was going to be the day’s pivotal point. I thought that if this level broke down, we could see a strong and sharp fall to the $9,000 area.

This was a relatively good call as I was right about the pivotal point although the action was not very strong. Nevertheless, the price is lower now than it was 24 hours ago.

The picture is essentially bearish, without any very clearly defined support level until $9,073. However, there are some bullish inflection points close by which could hold up the price, so I am not optimistic about a further fall.

I would be prepared to take a bearish bias if we get a retracement to $10,270 and a strong bearish failure to rise at that point.

btcusd

Concerning the USD, there is nothing of high importance due today.

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.