Bitcoin Chartpunk Daily Alpha #34

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 48.5k.

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. Yesterday the downtrend has been broken to the upside which is a bullish sign, but the price action has reversed and a new lower high has been printed. To build a bullish momentum, Bitcoin price should stay above the 60.8k level of the downtrend, reverse to the upside and print a higher high above 64k.

3-Day Bitcoin Predator Chart

The 3-day Bitcoin chart is bullish. The Predator indicator is green, and the price is above the ascending 20-period moving average. Long term uptrend is intact.

1-Day Bitcoin Predator Chart

This is a neutral chart, struggling to become bullish again. Predator has been printing red candles which is the sign of bearish trend. The price however has been able to climb back above the 20-period moving average, which is still ascending.

8-Hour Bitcoin Predator Chart

My LTF 8-hour Bitcoin chart is neutral. The Predator indicator is still bearish, but the price has been able to climb back above the 20-period moving average, and the MA seems to have started ascending again.

Summary

Both from the HTF market structure and Predator charts it is obvious that the long term bullish trend of the Bitcoin price is intact. The LTF charts are however still bearish/neutral to me, but we can see the bulls fighting to take back the control. To build a LTF bullish momentum, Bitcoin price should stay above the 60.8k level of the short term downtrend, reverse to the upside and print a higher high above 64k. I put more emphasis on the HTF charts, so I expect Bitcoin’s price to continue the upwards move, with the first targets being at the 65k and then 70k weekly Pivot points. The price level of 53k is a very strong support 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

Chartpunk

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