Bitcoin Chartpunk Daily Alpha #5
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.
8-Hour Bitcoin Chart
This chart has made a nice turnaround in the previous 1,5 days. We are back above the 20-period moving average, which started to increase. The price has a positive action, and is currently staying just under a Fibonacci resistance. The price is also stuck in a channel between 41000 and 43800, and bulls would need a clean breakout to the north. Based on this chart, a move to the 44600 area might be possible, but I am not opening positions solely on the basis of this time frame. I am a trend trader, and my main focus is on 1D and 3D charts. I am using the 8H chart to lay the bed for further decisions.
1-Day Bitcoin Chart
The positive movement of the previous days has some effect on the daily chart, it definitely pushes us farther from the option of opening a short position. The Predator indicator turned into neutral / slightly bullish, but the price still remains under the 20-period moving average and the Fibonacci resistance. The area of 44600–45000 will serve as strong resistance. For me, the 1-day chart is in the no trade zone. The 1-day chart is definitely a strong one, but without confirmation on the 8H and 3D, I do not enter into big positions.
3-Day Bitcoin Chart
I see not fundamental change on this chart from yesterday’s analysis. Price action is cautiously positive based on the Predator indicator, but the Fibonacci resistance at 43800 and the rising 20-period moving average at 46500 are clear lines of resistances before this chart could turn into bullish. I would need to see clear and solid closes above 46500, and support from the 1D and 8H charts to open a long position. The 3-day Bitcoin chart is my favorite and this is the one usually driving me into sizable positions, but I always wait for confirmation from the 1-day and 8-hour timeframes.
We had a good 1,5 days, resulting in the 8H chart becoming a bit more bullish, and also the daily coming out from a clearly bearish outlook of yesterday. I am however still sitting on my hands, to me the three charts together say to stay in cash, and wait for a clean trend. Yeah, I am missing swings in the meantime, but I am not looking for tops and bottoms, I just want to ride a trend after it has been consolidated. Patience is my core approach, I do not like to jump in and out of positions in short periods.
Global Bitcoin News
Billionaire investor Chamath Palihapitiya, chairman of spaceflight company Virgin Galactic and owner of NBA team the Golden State Warriors, has argued that Bitcoin has “effectively replaced gold.” “I think it’s very hard to kill. So technically, it’s very difficult. Just the way that it’s architected, it is the most profound iteration of the Internet that we’ve seen,” Palihapitiya argued.
Binance has committed resources, manpower and expertise to the fight against online criminals, which resulted in the arrests concerning cases worth hundreds of millions of dollars in damages. And as the world’s leading cryptocurrency exchange, it is uniquely situated to help tackle cybercrime using its big data capabilities, industry partnerships and much more.
Famous charter PlanB, the creator of the Stock to Flow pricing model has made a monthly price estimation back in the summer, and he seems to be right on target after the first two months. He predicted a 47k close for August, and 43k for September — bullseye. If his prediction stays on track, a 135k BTC price may be reached in December.
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.
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.