Bitcoin Chartpunk Daily Alpha #24

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

The Bitcoin market structure is bullish. We are in a short-term long trend since September 29. This long trend will collide with the all-time high resistance within the next 3–5 days. This could be a perfect setup for breaching the 65k ATH level and enter price discovery. Support is at 53k.

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. The current chart is bullish. Predator indicator is green, and the price is above the ascending 20-period moving average. Following the bounce-break-retest of the 0,786 Fibonacci level at 53k Bitcoin has started to challenge the ATH.

1-Day Bitcoin Chart

Our 1-day Bitcoin chart is fully bullish. The Predator indicator is green indicating positive price action, the 20-period moving average is ascending and the price is over the moving average level.

8-Hour Bitcoin Chart

Our short-term chart has become fully bullish again. The Predator indicator has flipped turquoise yesterday indicating a short-term slowing of upward price action, but it has turned back into green. 20-period moving average is rising, the price is above the moving average support line.

Summary

As mentioned above at the market structure analysis, I see a good chance of breaching ATH in the coming days. The upwards trend since the end of September will collide with the 65k ATH resistance. In case the trend is stronger, it may push Bitcoin into uncharted territory, where a nice level of retail FOMO may also be triggered. All of our Predator timeframes are bullish, odds in the bulls’ favor. Stochastic RSI is overbought on the daily, so the sidelined folks do not have a reasonable entry now, but they usually FOMO in the market anyway after new highs. The downwards break of the short-term long trend would be a sign of caution, and to the south the previous swing high and Fibonacci level of 53k-53.5k should serve as support. Long and strong folks, long and strong!

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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!

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!

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.

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Chartpunk

Trading and hodling bitcoin since 2015 I Focusing on longterm trends I No alpha for daytrades