Chartpunk

Oct 19, 2021

4 min read

Bitcoin Chartpunk Daily Alpha #23

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.

Market Structure

Bitcoin Market Structure 2021.10.19.

The Bitcoin market structure is currently bullish. We are in a long term bull trend since July 20. We are also in a short term bull trend since September 29. The previous swing high of 53k has been turned into support, and a support zone has been formed 54k and 57.5k.

3-Day Bitcoin Chart

Bitcoin 3-day 2021.10.19.

The 3-day Bitcoin chart with the Predator indicator 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. The chart is currently bullish. Predator indicator is green, and the price is above the ascending 20-period moving average.

1-Day Bitcoin Chart

Bitcoin 1-day 2021.10.19.

Our 1-day Bitcoin chart is also bullish. Predator indicator is green, and the price is above the ascending 20-period moving average. Bulls can not complain about this chart.

8-Hour Bitcoin Chart

Bitcoin 8-hour 2021.10.19.

My shortest timeframe is indicating some caution. The price has been staying consistently above the ascending 20-period moving average, but the Predator indicator has flipped into turquoise which is a cautiously long signal.

Summary

Based on market structure analysis, the bull trend which started on September 29 has remained intact, the ascending trendline support is currently around 60k. We have also short term support by the 20MA on the 8-hour chart being at 59.6k. Based on this, the level of 60k seems like a solid low-term support. Beneath that, the level of 57.5k should be the next level of support. I am long and strong, I expect Bitcoin to challenge the ATH level of 65k soon.

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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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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.