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 8H chart showed some strength yesterday, but unfortunately the trend direction did not change. The green close above the 20-period MA indicator was a good sign, but unfortunately it was not confirmed. As you see, the 20-period MA indicator is continuing to decline, and the price fell under it. There goes our chance for a potential long entry. The 8H chart is telling me to stay neutral. 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
Nothing has changed on the 1D chart since yesterday. We are in a declining trend under the 20-period indicator line. This is bearish, but not bearish enough in view of the 3D chart (see below) to take a short trade. 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
The 3D chart opened a new period last night, but did not change fundamentally. It closed under the 20-period MA. I would consider a long entry only in the case the 3D chart would close above 46500, and the bullish trend would be confirmed on the 1D chart. If the 20-period MA starts to decline, and if we start to see red candle closes, then a short opportunity could arise. The 3-day Bitcoin chart is my favorite and this is the one usually driving me into sizable positions, but I am using the 1D and 8H as supporting timeframes.
Summary
The 8H chart is neutral, the 1D chart is bearish and the 3D chart has the potential to turn bearish. We are now in a no-trade zone. I would say we are one leap closer to a bear trend than to a bullish market, but I am not opening any position right now.
Global Bitcoin News
“I don’t really care about bitcoin. I think people waste too much time and breath on it.” — Jamie Dimon, the CEO of JP Morgan declared again his stance against Bitcoin. Dimon stated that the latest bull market in cryptocurrencies was created by a lot of liquidity in the system, which then leads to speculation. However, Dimon also acknowledged there is the possibility that the cryptocurrency sector could increase its value tenfold in the next years.
Bitcoin Lightning Network metrics continue hitting all-time-highs this week. Lightning Node count hits 15.6k, total channel count is up to 73k, channel capacity is up 22% in Sept to 2,904 BTC. The Lightning Network allows individuals to send near-instant Bitcoin transactions with close to zero fees, enabling the use of Bitcoin as a real-time exchange of value.
Bitcoin’s price has been struggling to break above the psychological barrier of $50,000 for over 130 days now, and Coindesk collected 5 possible reasons for that.
Headlines aside, the vast majority of money managers remain hesitant about cryptocurrencies and blockchain technology, according to SkyBridge Capital founder and noted crypto booster Anthony Scaramucci. “The institutions are not there,” Scaramucci said. “Anybody who’s telling you there’s institutional adoption into this space is not being totally honest — or they’re seeing something that I’m not seeing.” You may read the full Bloomberg article here.
Like the newsletter? Do not miss any Daily Alpha, follow Chartpunk on Facebook!
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.
