Bitcoin Chartpunk Daily Alpha #46
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.
High time frame Bitcoin chart is still in an intact uptrend. Both key AVWAP levels are holding, and the price is printing higher highs and higher lows. The current consolidation is providing an opportunity for the stochastic RSI to approach lower levels, which could assist an upwards move in the coming days. Price action has been congesting for the previous days, which usually is followed by a strong move. My targets are still 72k and 81k monthly pivot resistances. 58.5k should hold support for now under normal market circumstances.
The low time frame chart is showing us how Bitcoin is struggling with getting back above the 65.5k AVWAP level of the latest push of November 6. The line is now serving as resistance, and to preserve the short term bullish momentum it would be essential for Bitcoin to confidently tackle this level as soon as possible.
The HTF Predator chart is bullish. Indicator is green, price is above the ascending 20-period moving average. No problems here.
The daily Predator chart is neutral. Indicator is bearish, but the price is above the ascending 20-period moving average.
The LTF Predator chart is neutral. Indicator has flipped bearish again, and the price is sitting on the 20-period moving average support. It is essential for the short term to hold that level of currently 64.7k.
The HTF market structure is still bullish, with targets of 72k and 81k. This would require however a strong push back above the 65.5k AVWAP resistance of the LTF chart, and turn this level into support. Oversold stochastic RSI on the 4-hour LTF chart may assist in this move. To the south the price could challenge the 62k level of the 20-day moving average, and in case of its fall 58.5k could serve as the next support.
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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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