Bitcoin Chartpunk Daily Alpha #25

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 uptrend started on the 29 September has successfully pushed Bitcoin through the previous all time high level of 65k, and gave us a new daily ATH close of almost 67k yesterday. In these moments the price is retesting the 65k resistance which is healthy. A successful retest may turn 65k into support. The short term uptrend is intact. Stochastic RSI is high, but considering the bull run of the previous weeks there is no surprise in that. Sidelined investors may follow the stochastic RSI, any dip into oversold might be their opportunity to enter the market.

3-Day Bitcoin Chart

The long timeframe chart is bullish. Predator indicator is green, the 20-period moving average is ascending and the price is above the moving average. The 1.618 Fibonacci extension is my midterm target at the price level of 99k.

1-Day Bitcoin Chart

The mid timeframe chart is also bullish. Predator indicator is green, the 20-period moving average is ascending and the price is above the moving average.

8-Hour Bitcoin Chart

My short timeframe chart is indicating volatile price action around the 65k level. Which is of course not surprising, after all we are talking about ATH level. The Predator indicator has flipped into orange, indicating a cautiosly bearish short term price action. The 20-period moving average however is ascending and the price is above the 20MA. The current snapshot of this chart is calling for caution.

Summary

Bitcoin made history yesterday, and closed at a new all time high of 67k. The pullback to the 65k resistance is in progress, we will see if it can be turned into a new support. A daily close above 65k would be confirmation of the bulls, and would bring my midterm price target of 99k at the 1.618 Fibonacci level in play. The uptrend which started on 29 September is supporting the bulls, at 62.2k it can provide support in case of a correction. The previous consolidation zone top of 57.5k and the 53k prior swing high and Fibonacci level are further support levels to the south.

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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