Bitcoin Chartpunk Daily Alpha #17

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

Bitcoin 8-hour 2021.10.13.

Our short timeframe Bitcoin chart is still calling for caution, and indicates that the consolidation following the big run-up is still pending. The Predator indicator is red, indicating a bearish short-term price trend. The 20-period moving average stopped ascending, and is on the verge of turning into a negative direction. The price is sitting on the moving average line as support. If this 55.5k level is lost, a re-test of the 53.1k Fibonacci support is absolutely possible.

1-Day Bitcoin Chart

Bitcoin 1-day 2021.10.13.

The 1-day Bitcoin chart is still indicating an intact bullish trend. Predator indicator is green, the 20-period moving average is ascending and the price is way above the 20MA line. This chart nicely represents, how the 0.786 Fibonacci level of 53.1k served as a resistance in early September, and then turned into a support in early October.

3-Day Bitcoin Chart

Bitcoin 3-day 2021.10.13.

The 3-day Bitcoin chart is bullish, indicating an intact positive trend. Predator indicator is green, 20-period moving average is ascending, price is way above the 20MA line. Comments are the same as with the 1-day chart, I see no problems here for the open long positions.

Summary

Bitcoin has rallied 45% since mid-September, which by all measures is a massive bull run. The price has smashed through the 0.618 and 0.786 Fibonacci levels like a raging bull. The pending consolidation is reasonable and healthy, the RSI on the 3-day chart is currently 63.4 which equals that of the start of the bull run at 2020 October. I am long, and if the 53.1k Fibo support level will hold, then I expect the price to tackle all-time highs. If the 53.1k level would fall, the price may drop to the 20MA of 48.6k. The current consolidation is very useful, because a lot of long entries from the mid-September levels can exit with handsome profits, and this takes off the selling pressure from the ATH zone, making the bed for an amazing bull run possibly into six figure price territory.

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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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My goal with this article to share a unique perspective on certain topics. I’d love to hear your thoughts or questions, so feel free to comment them below. Have a great day everyone!

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.

Trading and hodling bitcoin since 2015 I Focusing on longterm trends I No alpha for daytrades