Bitcoin Chartpunk Daily Alpha #20
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
Good news for the long holders, our 8-hour timeframe has turned fully bullish again. The breakout from the consolidation zone is now confirmed. Predator has turned backed into green, the 20-period moving average is ascending and the price is above the moving average value.
1-Day Bitcoin Chart
The 1-day chart is also looking bullish. Yesterday’s breakout is clearly visible. All of our bull conditions are met: Predator indicator is green, 20-period moving average is rising and the price is way above the moving average value. Not much to add here, solid chart, bulls are in play.
3-Day Bitcoin Chart
The 3-day Bitcoin chart is my favorite and this is the one usually driving me into sizable positions, but I always wait for confirmation from the 1-day and 8-hour timeframes. This is an absolutely healthy looking bullish setup here. Our Predator indicator is green, and the price is way above the ascending 20-period moving average line. Textbook outlook of a solid bull market.
The Bitcoin train has left the station between 53.5k and 57.5k, where it rested and consolidated nicely for an entire week. The current fundamental news fueling the growth are clearly the coming launches of multiple US-based ETF-s which are expected to start trading as of coming Monday. The logical next play will be the tackle of the all-time high at 65k. Technically an ATH is always a heavy resistance, but a solid breach of an ATH usually ends up in agressive price discovery. In such cases there is no further resistance to estimate for growth, but we can make estimation based on Fibonacci extensions. Here is what my target looks like:
As you see on the above weekly chart, the Fibonacci extension of 1.618 lies at the level of 98.9k which I consider as a reasonable target in the present bull run, in case the current ATH of 65k gets tackled, and probably retested. In case of any pullback I think that the recent consolidation zone between 53.5k and 57.5k will serve as effective support. I am long and strong, go Bitcoin!
Like the newsletter? Do not miss any Daily Alpha, follow Chartpunk on Facebook, Twitter, Telegram or Reddit!
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. My core strategy in trend trading is to look for a market setup where the 3-day chart is indicating a solid trend, and is supported properly by the 1-day and the 8-hour charts.
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.
Thanks for your clap :)
Did you know each Medium user can clap an article up to 50 times a day for free? If you want to show your support for my work, please consider clapping this article all 50 times! It helps a lot, and motivates me to write more!
Join the discussion!
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!
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 single source of information and without doing your own research.