Bitcoin Chartpunk Daily Alpha #28

Market Structure

Bitcoin Market Structure 2021.10.24.

3-Day Bitcoin Chart (Predator)

Bitcoin 3-day 2021.10.24.

1-Day Bitcoin Chart (Predator)

Bitcoin 1-day 2021.10.24.

8-Hour Bitcoin Chart

Bitcoin 8-hour 2021.10.24.

Summary

I am still on the opinion that the long term price action of Bitcoin will remain bullish. Defensive players might take off some capital at this level and wait for a clear market direction. The fact that the stochastic RSI has become oversold could also serve a nice entry point for the sidelined and the dollar cost averaging investors. My bet is that the price will not fall way under the current consolidation zone, and the bull run will continue, first by a clear break and retest of the 65k level, then upwards. The full reset of the daily stochastic RSI in this zone is my core reason for this. In the case of a breakdown, I think that the previous consolidation zone between 53.5k and 57.5k will hold the price.

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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.

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Chartpunk

Chartpunk

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