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.
8-Hour Bitcoin Chart
Now, that came from nothing :) A nice long candle just popped up on the chart, and there has been just no fundamental news for that. This is why I like to trade the long timeframes, where trends are more ripe. Longs may start to hope that the 8H chart will make an attempt to stabilize above the 20-period moving average currently staying at 42600. There is a resistance around 44600, let’s see if the price may tackle that. Short traders may take their fingers off the button for now. The 8H chart is currently a no-trade for me. I am a trend trader, and my main focus is on 1D and 3D charts. I am using the 8H chart to lay the bed for further decisions.
1-Day Bitcoin Chart
My bias on the daily timeframe has not changed since yesterday. We are still bearish, with a bearish price action and under a declining 20-period moving average line. Bulls should hope the price to tackle a very strong resistance zone between 44600–45000 to the upside, and to stay north of that zone for a good amount of time. To become bullish, I need both the price action and the 20-period moving average to turn. Short players may still looking for an entry based on this chart, but in lack of support from the 8H I would not enter a short trade here yet. The 1-day chart is definitely a strong one, but without confirmation on the 8H and 3D, I do not enter into big positions.
3-Day Bitcoin Chart
Same here as on the daily chart, no change in my bias since yesterday. There is a reasonable amount of optimism still here for the bull market not being over. The 40500 support held nicely, and provided ground for a nice bounce. Price action however is neutral, and the price is under the 20-period moving average which however is still increasing. Bulls need the price to quickly go above the 46300-46500 area. Problem is that the 46300–46500 area seems to have built up as a very strong resistance area. Short players are not supported yet by this timeframe, I would not call this timeframe bearish. The 3-day Bitcoin chart is my favorite and this is the one usually driving me into sizable positions, but I always wait for confirmation from the 1-day and 8-hour timeframes.
Summary
The 8H chart shows a significant bounce, so we are slightly farther away from entering a short position than yesterday. Especially in lack of support from the 3D chart. The only clearly bearish chart today is the 1D, but that is not enough for me to enter into a short trade. Taking all three timeframes into consideration, I am still more bearish than bullish. But I am patient, and I do not open longs or shorts if I do not see a trend supported by all my three favorite timeframes.
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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.
