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 high time frame Bitcoin market structure is bullish. Both the uptrend from July and that from October are intact with higher lows and higher highs. Following the latest ATH move, the price is currently retesting the previous high. A successful retest usually means flipping that resistance into support. If Bitcoin is able to leave the 66–67k zone to the north then the monthly Fibonacci pivots of 72k and 81k are reasonable next targets. The daily stochastic RSI is entering overbought territory, but in itself that should not mean a problem, upon the last big push the stochRSI has been overbought for three weeks. Under normal macro circumstances I am not expecting a dip under the AVWAP level of 58.1k. Ultimate support of the present bull run is currently at the 49k level of the AVWAP of the July push.
The low time frame Bitcoin market structure is showing the price breaking out from the congesting zone of the last 30 days. We are seeing a local pullback currently, which will nicely reset the 4-hour stochastic RSI before a new push. AVWAP level of 65.3k should provide support for this pullback. In case of a wider correction the 61.5–62.5k zone should provide proper support.
Predator Charts
The HTF Predator chart is bullish. Indicator is green, and the price is above the ascending 20-period moving average.
The daily Predator chart is neutral. The price is above the ascending 20-period moving average, which is a good sign for the bulls. But the indicator is still slightly bearish.
The 8-hour Predator chart is bullish. Indicator has started giving us consistent green candle closes, and the price is confidently back above the 20-period moving average. Very importantly, the 20MA seems to have started ascending again.
Summary
The high time frame Bitcoin market structure is bullish with targets of 72k and 81k and support levels at 58.1k and 49k. The low time frame market structure is also bullish, with local support of the current minor pullback at 65.3k. If 65.3k holds and the stochastic RSI resets on the 4-hour chart, then the run towards 72k should be the reasonable next market move. The Predator charts are bullish on the 3-day and 8-hour time frames, and neutral on the 8-hour time frame. I am long and strong, and my bets are on upwards continuation.
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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.
