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
The BTC price has started to consolidate above the 53k area. This is clearly visible on our low time-frame. The Predator indicator flipped to orange which is a call for lowering long exposure. The price is still above the ascending 20-period moving average. The chart is bullish, but calls for caution. 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
Our mid-level timeframe has remained bullish. The consolidation is clearly visible above the Fibonacci level of 53k and the demand zone. Predator remained green indicating a strong long trend, and the 20-period moving average is still ascending way below the current price level. No changes here since yesterday.
3-Day Bitcoin Chart
Our main timeframe, the 3-day Bitcoin chart has remained bullish. Predator is green, and the price is above the ascending 20-period moving average. The consolidation has become visible on our current candle which will close today. No significant changes here since yesterday.
Summary
I am long on Bitcoin, and I have set my stops just under 50k. The current price consolidation is clearly visible on the 8H chart, but has not yet affected the trend indication of the 1D and 3D charts. The consolidation is absolutely healthy, the market needs to cool a bit following the run from the 40k levels. The 0.786 Fibonacci level at 53.1k is supporting the price very effectively, and our demand zone between 51k and 53k is likely to support a further pullback. There is an additional support zone to the south between 47k and 48.5k. In case we see a clear breakout to the north from the current consolidation zone then the previous ATH zone of 60k to 65k seems easily reachable.
One of my favorite long term trend indicators, the Bull Market Support Band is a key level to maintain the bull market. The upper line resides at 44k which is also the level of the 0.618 Fibonacci line. Losing this would signal the end of the bull market to me.
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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.
