Bitcoin Chartpunk Daily Alpha #22
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 short term chart has remained bullish. Predator is green, and the price is above the ascending 20-period moving average. The 20MA nicely held the price as support last night at the mini correction down to 59k. Bullish trend intact here.
1-Day Bitcoin Chart
Our mid-level timeframe is also bullish. All of our bullish trend confirmation conditions are met: Predator is green, and the price is above the ascending 20-period moving average. Chart looks good.
3-Day Bitcoin Chart
The 3-day Bitcoin chart is my main timeframe 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. Not much to say about this chart, looks bullish. Predator is green, price is way above the 20-period moving average. Long term trend is consistently bullish.
Bitcoin had a great week, and it is on its path to tackle the previous all-time high level of 65k. All mini dips are immediately bought, the bull market is raging. In my opinion a test of the 65k resistance is imminent. Any consolidation between the 57500 support and the 65k resistance is good for Bitcoin, the longer the consolidation, the bigger the upwards move following the breach of 65k. I am long and strong, we are looking forward to a great week. My stops are around 53500, I do not want to be chopped, but want to be protected against any black swan event. In case Bitcoin successfully tackles then retests the 65k level, my Fibonacci-based target is 99k at the 1.618 extension.
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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 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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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.