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
On the high time frame chart Bitcoin has bounced back again from the ATH zone, and corrected downwards to the descending trendline of October 20. The price has already lost the AVWAP level of the October 20 pullback, we will now see if the trendline itself is able to hold. StochRSI is again on its way to oversold territory. Next supports on the south are the 57200 monthly Fibonacci pivot level and the 55800 AVWAP level. The HTF bull scenario is intact with the ultimate support of the 49600 AVWAP level of the July 22 uptrend.
The low time frame Bitcoin chart is not looking great. Bitcoin has lost many important support levels overnight. To start with the only good news here: the StochRSI has reset in the oversold territory. Lots of negative news though here. The price has lost the AVWAP levels of both the November 6 and October 12 pushes. The upwards trendline from October 12 is lost, and price is back under the downwards trendline from October 20. The 20-day moving average is also lost. In the short term the bullish momentum is lost.
Predator Charts
The HTF Predator Bitcoin chart is bullish. Indicator is green, and the price is above the ascending 20-period moving average.
The daily Bitcoin chart is bearish. The Predator indicator is bearish and the price seems to be losing the 20-period moving average. 20MA is still slightly ascending though, but is on the way of flipping direction.
The LTF Predator Bitcoin chart is bearish. Indicator is bearish, and the price has lost the 20-period moving average, which has started to decline. Short term momentum is clearly bearish.
Summary
The high time frame bullish scenario on the Bitcoin market is technically still intact. The HTF Predator chart has remained bullish and the HTF market structure is in an uptrend. In the long term the bullish approach will be upheld as long as the AVWAP support of July 22 (currently at 49600) holds. Short term charts however are lacking all strength. The LTF chart has lost all significant support levels during the overnight pullback. As said above, further supports are around 57200 and 55800. Since we are in a HTF bull trend, the textbook strategy is to buy around the supports.
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.
