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 which started on 29 September has successfully pushed Bitcoin to a new all-time high, but has not resulted in aggressive price discovery yet. We have seen a small correction yesterday, where the 60k level was tested as support. The price has closed the daily chart under the short term uptrend line, we will see in the coming days whether the price can reclaim the trendline support. The stochastic RSI indicator has came out of overbought territory, which is proof of the bull run cooling a bit.
3-Day Bitcoin Chart
The 3-day chart has given us a new green Predator close on the daily which is sign of an intact positive long term price trend. The last closed candle has a very small body and long wicks, indicating a volatile market environment, and temporary indecision of price direction. The 20-period moving average is under the current price, and rising, which is a sign of bullish trend. All in all, chart is still bullish.
1-Day Bitcoin Chart
Our mid-term timeframe has remained bullish. Predator has remained green, and the price is above the 20-period moving average.
8-Hour Bitcoin Chart
As mentioned yesterday, our short-term chart has started to indicate the cooling of the bull run. Since yesterday it has given us three red Predator closes and the current candle is also red. This is an indication of short-term negative price action. The 20-period moving average is currently being tested as support.
Summary
Bitcoin seems to be slowing in upwards price movement. The upwards trend which started on 29 September is being currently tested, and it correlates with the 20MA on the 8-hour chart. Should this 62–63k level not hold the price, we may see a correction downwards. The first support zone to the south is the area between 57.8k and 59k. If this area is lost, then the price may continue downwards to the support area between 53.2k and 54k. If however the upwards trend holds, and the price is able to bounce, then the price discovery towards new all time highs may continue. I am still long in my Bitcoin positions, but I am watching the market closely, and might take some temporary profits if price starts to retrace.
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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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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.
