BTC/USD Forex Signal - 20 November 2019

Adam Lemon

Bitcoin: Double bearish price channels push price down

Yesterday’s signals were not triggered, as none of the key support and resistance levels identified were reached.

BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered before 5pm Tokyo time Thursday.

Long Trade Ideas

⦁ Long entry after a bullish price action reversal on the H1 time frame following the next touch of $7,754 or $7,202. 

⦁ 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

⦁ Short entry after a bearish price action reversal on the H1 time frame following the next touch of $8,154, $8,375 or $8,703.

⦁ 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 technical picture was bearish, but I would want to see a retracement to a key resistance level before taking another short trade. I thought the price might at least sit on the resistance level near $8,150 for a while. However, the bearish momentum continued in line with the double bearish price channel structure which can still be seen within the price chart below.

The price movement has created a new lower “stairstep” resistance level at $8,154. This could again provide a great short trade entry opportunity.

One note of caution for bears: the nearest support level shown in the chart at $7,754 could become a very interesting entry point for long-term buyers, due to its confluence with the lower channel trend line and the psychological quarter-level at $7,750.

A sustained break below $7,754 would be a very bearish sign.BTCUSDRegarding the USD, there will be a release of FOMC Meeting Minutes at 7pm 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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