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 8-hour chart is bullish, showing signs of Bitcoin building a new consolidation zone above 60k as support. Following the breakout, yesterday the price retested 60k, and successfully bounced. No signs of bearish price action, this seems more like a temporary pause before continuing the rise. Predator indicator is green, and the price is above the ascending 20-period moving average, chart is bullish.
1-Day Bitcoin Chart
The 1-day chart is also looking positive. All of our bullish trend conditions are met, Predator is green, the 20-period moving average is rising and the price is above the moving average value. The consolidation mentioned above starts to be showing on this chart as well, which in itself is not a problem.
3-Day Bitcoin Chart
My main Bitcoin timeframe, the 3-hour chart has remained fully bullish, indicating a long term bullish price trend. The Predator indicator is green, and the price is way above the ascending 20-period moving average line. All good here, no signs of weakness.
Summary
Long position holders do have nothing to seriously worry about, bears are completely sidelined for now. All of our three charts are indicating bullish price action, which is my core condition of holding long positions. We are currently in the final big support zone before the 65k all time high level. If the 60k level is established as support, then we may range a bit in the 60k-65k zone. The longer we range in the 60k-65k zone, the more aggressive a potential breakout above the ATH will be. The market does not show any signs of weakness, I expect the demand zone between 53.5k and 57.5k to provide a safety belt in case the 60k line would fall.
For the sidelined, who want to join the current long trend, a potential entry opportunity is closing up. During consolidated Bitcoin bull runs, an oversold stochastic RSI on the 4-hour chart usually serves as a nice entry opportunity. As I indicated on the above chart, the price is closing down on the 20MA on the 4-hour chart, and the stochastic RSI has a potential to reset to the downside. If you are considering an entry, the indicated zone might be your good chance.
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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. My core strategy in trend trading is to look for a market setup where the 3-day chart is indicating a solid trend, and it 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.
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Join the discussion!
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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.
