Bitcoin Chartpunk Daily Alpha #39

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 Bitcoin market structure is bullish. Higher highs and higher lows are indicating an intact bull trend. The VWAP anchored to the September 29 push nicely held the price, and is serving now as support, currently at 57.4k. The VWAP anchored to the recent swing high is currently at 61.8k, and has been successfully tackled. The price should continue to stay above this level to invalidate this pullback for good. The next monthly pivot resistance targets are at 66.5k and 72k.

The low timeframe Bitcoin chart is bullish. The price is above both the VWAP anchored to the October 12 push and the one anchored to the recent swing high. The upwards trend line from October 12 nicely held yesterday’s pullback, and has been reinforced as support, currently at 60.5k. Continued price action above 62k could cause the the VWAP lines to cross up, and invalidate the pullback from the ATH zone. Weekly pivot support is at 60.8k, and the next resistances are 63.2k, 64.7k and 67.1k.

Predator Charts

The HTF Predator chart is bullish. Indicator is green, price is above the ascending 20-period moving average line. Long holders trading this chart should feel comfy.

The 1-day Predator chart is neutral. The indicator is still bearish, but the price is struggling to stay above the still ascending 20-period moving average.

The LTF Predator chart is bullish again. The indicator has been consistently green now for two days, and the price has claimed back the territory above the ascending 20-period moving average. This setup should support the 1D chart to become bullish again soon.

Summary

I am still long and strong. The LTF market structure is bullish. If Bitcoin’s price is able to stay above 62k then the pullback from the ATH would be invalidated as a downtrend, and Bitcoin will approach resistances to the north. Two main areas of resistance could be the 66–67k zone and then 72k. To the south the levels of 57.5k and 48k are the support levels. I am expecting upwards price action.

Like the newsletter? Do not miss any Daily Alpha, follow Chartpunk on Facebook, Twitter, Telegram or Reddit!

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.

Thanks for your clap :)

Did you know each Medium user can clap an article up to 50 times a day for free? If you want to show your support for my work, please consider clapping this article all 50 times! It helps a lot, and motivates me to write more!

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.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Chartpunk

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