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 chart of Bitcoin is bullish. The price is confidently above the upwards trendline, higher highs and higher lows are printed consistently. Yesterday Bitcoin made a very important move back above the VWAP of the correction from the ATH. If it is able to stay above, then the temporary correction will be deemed over. The VWAP calculated from the September 29 push is currently at 57.1k which is also our monthly pivot point. I consider it to be a very strong resistance on the south. To the north the resistance is the 66.3k level. A retest of the short VWAP of 61.7k would be reasonable.
Yesterday Bitcoin made a very important move, and tackled both the downwards trendline of the price congestion area, and climbed above the VWAP of the latest correction. It is very important for the bulls to keep the price above 62k to maintain the bullish momentum, and to avoid the VWAP levels of the latest downward and upward moves to cross over. A successful new bullish wave may take us the the current ATH area of 66–67k. To the south on the LTF chart 61.2k and 58.6k are very important support levels.
Predator Charts
The HTF 3-day Predator chart is bullish. Indicator is green, and the price is above the ascending 20-period moving average. Intact Predator long trend, no comments here.
The 1-day Predator chart is neutral. The price has successfully reclaimed the ascending level of the 20-period moving average, but the indicator is still showing bearish trend. Strong price action above 62k is needed here, and the price should not fall back below the 20MA.
The LTF Predator chart is starting to get bullish again. The price is above the 20-period moving average, and price action above 62k will make the MA start ascending again. Predator gave us bullish closes which means that the short term price action seems to become bullish.
Summary
Our HTF charts are consistently bullish, and if the price action can continue to stay above 62k then the LTF charts will flip as well. I am betting on upwards price action, and I am holding my long positions. The next target on the north is the level of 66–67k of the previous all time high, if that is tackled then 72k should be the next stop. To the south I consider the level of 61–62k a nice immediate support, and my ultimate support level is 57k.
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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.
