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
Our 8-hour chart remained bullish yesterday. We are above a rising 20-period moving average, and the Predator indicator is green. The price sliced through the resistance zone of 51000–53000 like a hot blade through butter. I would not exclude a retest of this zone, which would be healthy for the bulls, and a great entry for the sidelined.
1-Day Bitcoin Chart
Bitcoin is on the go. The Fibonacci levels of 44000 and 50000, and the 20-period moving average have been just barely resistances, the liftoff is impressive. This chart is bullish. Predator is green and the price is way above the 20-period moving average. All my bull criteria are met on this chart.
3-Day Bitcoin Chart
Our 3-day chart looks amazing if you are a long player. We just had our first green Predator close above the 20-period moving average. This is my ultimate entry signal if supported by the 1-day and 8-hour time-frames. The Bitcoin bull market is confirmed and intact according to my trading criteria as this chart is bullish, and we have confirmation from the 1D and 8H time-frames.
Summary
Bull runs like this are usually fueled by some over-leveraged retail positions, so in case of a correction do not be surprised by enhanced volatility. As said above, the bull market is confirmed and intact, all of our three time-frames support the long play. The next serious resistance zone to the north is that of 61500–65000 which is the historical ATH supply zone. All the odds are in favor of reaching it pretty soon. Since we have had however an almost 30% run without any corrections, I would expect Bitcoin to start some healthy correction. Due to the fact that strong Bitcoin long runs are fueled by leveraged retail positions, a hectic correction is not to be excluded. Resistance zones for such correction could be 51000–53000 (Fibo level and supply zone) and 47000–48000 (20-period moving average). In such an intact long market these resistance zones are buy the dip opportunities.
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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.
