Bitcoin Chartpunk Daily Alpha #37

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 HTF market structure chart of Bitcoin is still bullish. Higher highs and higher lows are printed. Recent uptrend from July is intact. Price is above the VWAP calculated from the commencement of the recent push of September 29. The stochastic RSI is oversold. Fibonacci-based pivot points for the current month place the first resistance to 66.3k and the support to 57k (which is the same as the VWAP level indicated above).

The LTF Bitcoin market structure chart is still in price congestion mode. The main question to be decided within the coming days will be whether the uptrend of October 12 or the downtrend of October 20 will be stronger. Price is congested between these trendlines and also between the VWAP levels calculated since these days. The congesting price action forecasts a strong move in the coming days. The weekly Fibonacci-based pivot points indicate 63.2k as resistance and 58.5k as support.

Predator Charts

HTF Predator chart is bullish. Indicator is green and the price is above the ascending 20-period moving average at 53k.

The daily Predator chart is neutral. Indicator is bearish, but the price is struggling to hold the ascending 20-period moving average support of 61.5k. Bulls definitely want to avoid the 20MA to start declining on this chart, so a strong price action above 62k is vital for the long players.

The LTF 8-hour Predator chart is neutral. The 20-period MA has been flat around the 61–62k zone, and the price has been struggling to retake it as support in the previous days. Strong price action above 62k is needed here to start trending up again. Indicator is flipping between bullish and bearish, Predator in itself is not a signal on this chart.

Summary

In a wide perspective the long term Bitcoin bull market is intact. Both the HTF market structure and Predator charts support this. I am expecting the price to start making a new push upwards to the 66k region in the coming days. The LTF market structure chart is at the moment the most important to follow, as it will most likely show the direction of the coming push after the price congestion.

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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

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