Bitcoin Chartpunk Daily Alpha #35
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.
The HTF Bitcoin market structure is bullish. We are seeing higher lows and higher highs, which indicate an uptrend. The price is confidently staying above the VWAP (volume weighted average price) of the latest upwards push, which is telling us that the push started on 22 September has not been exhausted yet. The daily stochastic RSI has completely reset in the oversold territory, signaling a potential upwards move.
On the LTF 4-hour chart we are seeing a congesting price action, between the uptrend of 12 October and the downtrend from 20 October. The price is not really able to climb above the VWAP calculated from the 20 October top, and is also staying under the downwards trendline. In the short term, strong price action above 62k could bring back the clear bullish momentum. Good news for the bulls is that the VWAP calculated from the upwards move of 28 October is south from the price, indicating short term upwards momentum.
The HTF 3-day Predator chart is bullish. Predator has given us a new green daily close, and the price is staying above the ascending 20-period moving average level. The 20MA has reached the Fibonacci support of 53k, together they are serving as a very strong support to the south.
The 1-day Predator chart is neutral. Predator is red, which is bearish. Price is however still above the ascending 20-period moving average, which is bullish. Strong price action above 62k is needed here, to flip this chart into fully bullish.
The LTF 8-hour Predator chart is neutral. Predator is giving us cautiously bearish (orange) closes, but the price has made it back above the 20-period trendline, which seems to have started ascending slightly. My opinion here is the same as above, strong price action above 62k is needed here for the bulls.
Based on the HTF charts the bullish momentum is intact. If Bitcoin is able to build strong price action above 62k, then based on weekly pivot points the price could easily get to 64.5k and then 70.5k. The price region of 53-53.5k has been built out as a very strong support zone to the south, I am not expecting a fall under that.
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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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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.