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 bull market has been cooling a bit in the previous days which is absolutely fine after breaching the all time high days earlier. The stochastic RSI has started to near oversold territory. The short term upwards trend has clearly broken, and the intersection of the trendline and the previous ATH resistance at 64.8k is rather strong. The negative price action is bringing our previous consolidation zone between 53.5k and 57.5k back into play, as a very strong support zone on the south. The long term uptrend is intact.
3-Day Bitcoin Predator Chart
The 3-day Bitcoin chart is bullish. Predator is indicating bullish trend with green, and the price is above the ascending 20-period moving average line. The stochastic RSI is still overbought on this timeframe, but has started to cross downwards, indicating the cooling of the run.
1-Day Bitcoin Predator Chart
The 1-day chart has started to show the effects of the consolidation. Predator gave us a volatile orange close yesterday, which is a cautiously bearish indication. Defensive players might take some profits here, I am not that much concerned yet. The 20-period moving average is still ascending and the price has not dipped under it. Stochastic RSI has started to approach oversold territory, this is not a bearish chart to me.
8-Hour Bitcoin Predator Chart
The 8-hour chart has turned into bearish. The Predator indicator has been bearish for multiple periods now, the price has fallen below the 20-period moving average and the moving average line has started to decline. The stochastic RSI has become fully oversold on this timeframe, and the price seems to be hovering around the 60.6k zone.
Summary
It is great news for the sidelined folks that the stochastic RSI is starting to reset as oversold on the daily chart, and is clearly oversold on the 8-hour chart. This is usually a great entry point for the people who want to join the bull market, but do not want to FOMO in pumps. The fact that the stochastic RSI is able to reset on the daily above 60k shows enormous reserve to me in future positive Bitcoin price action. A strong tackle of the 64.8k resistance would signal the next aggressive leg up towards my 99k mid-term target price. The 0.786 Fibonacci support at 53.2k correlates with the lower bottom of the 53.5–57.5k demand zone indicated above at market structure, I do not reasonably expect a dip beneath these levels. I am long and strong.
Like the newsletter? Do not miss any Daily Alpha, follow Chartpunk on Facebook, Twitter, Telegram or Reddit!
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.
Thanks for your clap :)
Did you know each Medium user can clap an article up to 50 times a day for free? If you want to show your support for my work, please consider clapping this article all 50 times! It helps a lot, and motivates me to write more!
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.
