Bitcoin Chartpunk Daily Alpha #19
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 low time-frame chart shows how the Bitcoin price is trying to break out from the consolidation channel of the previous days. A solid close above 57500 should be the signal that the price has left the channel, and right now it seems that we will get that close.
1-Day Bitcoin Chart
Our 1-day chart is bullish. We can see here as well the takeoff from the consolidation channel. Predator is green, indicating a bullish trend. The price is above the ascending 20-period moving average. All good here for the bulls, no complains.
3-Day Bitcoin Chart
The 3-day Bitcoin chart is still bullish. Predator is green, and price is way above the ascending 20-period moving average. The consolidation and retest of the 0.786 Fibonacci level at 53.3k has been a nice opportunity to join the trend during the previous week.
The sky is clear and blue for the bulls. Today’s snapshot is showing that we have reasonable chance to leave the consolidation zone of 53.3k — 57.5k to the north. The fact that the price consolidation has lasted for more than a week is useful for the bulls, as it has provided an opportunity for low-level entries to take profit, and took out some selling pressure from the market. I expect the consolidation channel to turn into a demand zone and support, but we need a clear 8-hour and 1-day close above the zone first. I expect Bitcoin to close in on the ATH level of 65k as a reasonable next step. This might be supported by the heating ETF news, as yesterday multiple sources have confirmed the launch of the first US ETF-s within the course of the next week. If Bitcoin is able to tackle the ATH, we can reasonably expect huge media coverage and a retail FOMO which could catapult our favorite cryptocurrency into solid price discovery towards the 100k zone. Long and strong guys, long and strong!
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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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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.