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 3-day Bitcoin HTF market structure is bullish. We have an intact uptrend since last September, and also a shorter one since July this year. The downtrend which started in April this year has been clearly broken, and should serve as an ultimate resistance to the present bull market, currently at the level around 47k.
On the 4-hour Bitcoin chart there is a downtrend since October 20, and on this LTF market structure we see a bearish trend. The price has been printing lower highs and lower lows, which are the clear signs of a downtrend. Bitcoin should start to print strong closes above 62k in order to tackle this downwards trending market structure.
3-Day Bitcoin Predator Chart
The 3-day Bitcoin chart is bullish, indicating the HTF long term bullish momentum. Predator indicator is green, and the price is above the ascending 20-period moving average. Stochastic RSI is overbought, but has started to trend downwards. The prior swing high of 53k is a strong support here, and it aligns with the 0.786 Fibonacci level and the level of the 20MA as well.
1-Day Bitcoin Predator Chart
The 1-day chart is neutral. Predator has been printing red candles for 5 days now which is a bearish sign. The 20-period moving average however is still ascending, and the price is trying to get back above the MA line. The stochastic RSI has absolutely reset in the oversold territory.
8-Hour Bitcoin Predator Chart
The LTF 8-hour chart has been bearish for a week now. Predator has been printing red candles which is a bearish sign. The 20-period moving average has started to descend, and the price has not been able to climb back above the 20MA level. Stochastic RSI is trending up, but usually the short term downwards trendline (mentioned above at Market Structure chart) resets it as overbought. Strong closes above 62k are needed here for showing some bullish momentum again.
Summary
The HTF charts indicate that the long term uptrend is intact, with 58k and 53k as key support levels. The level of 53k has been especially built out, as it is currently the 20MA level of the 3-day chart, the prior swing high, and also the 0.786 Fibonacci level. Bulls should hope that it holds under any circumstance. The LTF charts are showing that the upwards momentum is capped by a descending trendline, and consistent lower highs and lower lows are being printed. Bitcoin should start printing strong candles above 62k, and then the bullish momentum could be regained also on the LTF charts.
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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!
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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.
