Bitcoin Chartpunk Daily Alpha #41
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 chart is still bullish in the long term, the uptrend of July 21 is intact, and the price is above the AVWAP of the September 29 push. It is starting to be a concern that the price is not able to solidly get back above the AVWAP of the recent ATH level, and can not invalidate the recent pullback. Also, the price has printed a lower high which is not a good sign. The chart is bullish in the long term, but the 64.2k level should be tackled very soon along with the AVWAP of October 20 currently sitting at 61.8k. Bitcoin needs strong price action above 64.2k to continue its way upwards to the ATH level of 66–67k. Stochastic RSI is still in the low region, possibly assisting an upwards momentum. The AVWAP level of 57.5–58k calculated from the September 29 push should serve as a strong support in case of any pullback.
The LTF Bitcoin chart is still bullish in the sense that the price is sitting right on the upwards trendline from October 12, and seems to be in preparation of a bounce. The low level of the stochastic RSI is supporting this theory. It is very important for the bulls to bounce from here. And the sidelined investors looking for a long entry have their opportunity now. A bounce from the 60.8k level is vital here, along with strongly getting back above the AVWAP levels calculated from both the October 12 low and the October 20 high. A break above 64.3k would open the road to the 66–67k ATH level. If the 60.8k trendline support would fall, then the price may retest the 58k level.
The HTF 3-day Predator chart is bullish. Indicator is green, and the price is above the ascending 20-period moving average support.
The 1-day Predator chart is neutral, slightly leaning bearish. The indicator is bearish, and the 20-period moving average seems starting to decline. This is a very important point for the bulls to take charge and boost the price.
The LTF Predator chart is neutral. 20-period moving average is completely flattened out, and the price is hopping around its level. Predator is also not decisive. There is no clear direction on this chart.
Today the Predator charts are not of a big help, as the multiple timeframes have clearly started to be indecisive. If you are trading solely on the Predator indicator, this is no time to take position. As seen from the HTF and LTF market structure analysis, the long term bullish momentum is active with supports at 58k and 48k. In order to continue its way upwards, Bitcoin needs to tackle the recent swing high of 64.3k, in which case the ATH level of 66–67k could be the next key area. The low level of the stochastic RSI on both the LTF and HTF charts are an important signal for the sidelined investors to possibly make their entries. If you trust the Bitcoin bull market, this is a reasonable point to buy.
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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.