Chartpunk

Nov 8, 2021

4 min read

Bitcoin Chartpunk Daily Alpha #42

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

Bitcoin HTF Market Structure 2021.11.08.

Bitcoin HTF market structure is bullish, higher highs and higher lows are being printed. Price is currently in the 66–67k resistance zone. The VWAP anchored to the July 21 low is at 48.7k and the VWAP anchored to the September 29 low is at 57.7k, these are my support levels in case of a pullback. The current 66–67k level is ATH resistance, so the price may take a pause here before making new records. In case of breach of the ATH resistance zone, my next target is the 72k level.

Bitcoin LTF Market Structure 2021.11.08.

The 4-hour $BTC chart is in a beautiful breakout towards the resistance zone of 66–67k. Higher highs and higher lows, the chart is bullish. In case of a pullback 64.3k and 61.5k shall serve as reasonable supports.

Predator Charts

Bitcoin 3-day 2021.11.08.

HTF Bitcoin Predator chart is bullish. Indicator is green, price is way above the ascending 20-period moving average level.

Bitcoin 1-day 2021.11.08.

1-day Predator chart is neutral. Price has nicely reclaimed the 20-period moving average line, but the indicator has remained bearish.

Bitcoin 8-hour 2021.11.08.

The LTF Predator chart is bullish again. Indicator has started to print bullish candles and the price has reclaimed the 20-period moving average line.

Summary

The HTF Bitcoin market structure has remained bullish, and there are no real concerns currently for the bulls. The HTF Predator chart also supports the bullish approach. In my estimation, Bitcoin might consolidate for some time around the 66–67k ATH level, and in case of a successful breach (and possibly retest) of this resistance, 73k will reasonably be the next stop. To the south 57–58k and 48–49k are strong support levels.

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.