BTC/USD Forex Signal - 24 September 2019

Adam Lemon

Bitcoin: More bearish but supportive trend line intact

Yesterday’s signals were not triggered, as there was insufficiently bullish price action at $9,801 when it was first reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken 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 the ascending trend line shown in the price chart below currently sitting at about $9,567 or the horizontal level at $9,073.

  • Put 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 $9,833 or $10,062.

  • Put 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 price chart was dominated by the long-term bearish trend line which was suppressing the price. I was ready to take a bearish bias later if we had gotten two consecutive hourly closes below the strong support at $9,801, as the larger technical picture was suggesting a breakdown. This was a good call as that level did break down, and the price is currently about $75 per coin lower than the entry point given yesterday for a short trade.

The picture is more bearish, with a formerly supportive area flipping to become new resistance at $9,833. However, there is a long-term bullish trend line below and an inflective area which has seen buying recently, and these may prevent much of a further fall, so bears need to be careful.

I would take a bearish bias today if we get two consecutive hourly closes below $9,500 later today.BTCUSDRegarding 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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