Bitcoin Chartpunk Daily Alpha #49
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 Bitcoin high time frame chart is still bullish. When we really zoom out, we can see that the price has nicely retested the April ATH supply zone, and might be ready to bounce upwards. The uptrend started in July is intact with higher highs and higher lows, and a support of 49500. The AVWAP level of the September push is currently providing further support at 58800. The current AVWAP level of the corrective move of October 20 is 62800, in order to keep the immediate bullish momentum, the price should hold this level.
The low time frame Bitcoin chart is hopeful, as the price has been able to get back above the AVWAP level of November 6. It is very important for the bulls to hold this line currently sitting at 65000. Further support to the south is the 62500 level, which has been very strongly built out as support by the AVWAP level of October 12, the upwards trendline from October 12 and the 20-day moving average.
Well done by the late arriving bulls. As a result of their last night’s move, the indicator could remain bullish, and has not lost the bullish momentum. Price is well above the 20-period moving average. HTF Predator chart is bullish.
The 1-day Bitcoin Predator chart has remained neutral. Indicator is bearish, but the price has been holding the 20-period moving average level, which is slightly ascending still.
The LTF Bitcoin Predator chart is neutral to bearish. It seems that the 20-period moving average has started to slightly descend again, and it is currently serving as resistance to the price action. Indicator is bearish. Bulls still need more strength in the short term.
As you might already know, the high time frame charts are the most important to me in portfolio management. The HTF market structure is still bullish, I am holding my long positions. It is very important, that the price has been able to build a base at the April supply area, as such a momentum could lay the bed for a confident leg up. Stochastic RSI on the daily timeframe is low, assisting the potential upwards move. In the short term it is essential for the bulls to hold the 62500–62800 level, in order to keep the 67000–72000–81000 price targets in play.
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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.