Join me on the journey to a 250k+ Bitcoin price! We will definitely have some good and bad times on this bumpy road, but with good alpha we will be able to ride strong trends and avoid sharp losses. Being a trend trader, I am not promising to pinpoint exact highs and lows, but I hope my view will assist you in making your own decisions.
8-Hour Bitcoin Chart
This chart is in a consolidated bull run. The short squeeze of October 1 has not resulted in any corrective pullback, the price just consolidated a bit, and then continued its way to the north. This power is impressive, but overbought conditions may trigger some pullback. Predator is green, 20-period moving average is rising, price is way above the moving average. All my bull conditions are met on this chart. I am a trend trader, and my main focus is on 1D and 3D charts. I am using the 8H chart to lay the bed for further decisions.
1-Day Bitcoin Chart
I could copy-paste the same that I have written above at the 8-hour chart. Nothing else to say. Chart is bullish, no correction since the shot from the Fibonacci resistance of 44000. Market might soon become overbought temporarily. Predator is green, 20-period moving average is rising, price action is bullish. The 1-day chart is definitely a strong one, but without confirmation on the 8H and 3D, I do not enter into big positions.
3-Day Bitcoin Chart
This is the news of the day for me: Predator indicator has finally turned green, indicating an intact long trend. I still need it to close in green today, but this has been the only thing missing from an overall bull market in my strategy. Notice how the 20-period moving average has not started to descend during the latest dip, great sign! The 3-day Bitcoin chart is my favorite and this is the one usually driving me into sizable positions, but I always wait for confirmation from the 1-day and 8-hour timeframes.
Summary
Guys, we are bullish, the positive trend has been confirmed by all of my trading strategy conditions. All of my timeframes show a consolidated bull trend. I am long, with an average entry price of about 48k. I am intending to take some profits just under the 53000 price level, this is where the price could temporarily reverse and the market could cool a bit. It would be rather healthy to consolidate around 53000, and could lay the bed for the next target of 65000. The price levels of 50000, 47000 and 44000 are serving as support zones, these are great levels to buy the trend. A drop in price under the 44000 level, and consolidation under the Fibonacci level would be a negative signal, and a drop under 37500 would signal an end of the long trend.
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What is trend trading?
Trend trading is a market strategy that is reasonably different from swing trading or day-trading. A market “trend” is a tendency of a financial market price to move in a particular direction over time. Swing traders and day-traders are usually trying to pinpoint low-term market tops and bottoms, and take aggressive positions expecting to profit from a swift change of market direction. Trend traders are looking for consolidated and strong directions on a given market, and are trying to ride the trend for as long as possible. These traders normally enter in the market after the trend “properly” establishes itself.
What is the indicator coloring my chart candles?
I am using the Predator indicator from Decentrader as my core trading tool, that is coloring my candles green-red-turquoise-orange, and is providing me basic information on the trend. I am also using the 20-period moving average and Fibonacci levels for the identification of supports and resistances.
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Disclaimer
The present article is a free material, for entertainment and educational purposes. Nothing in this post shall be considered as financial advice, you shall never make any financial decisions or financial investments based on a singly source of information and without doing your own research.
