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
Notwithstanding the current correction, the high time frame Bitcoin chart is still bullish. The uptrend of July 22 has currently its trendline support 52200 and its AVWAP support at 49800. As long as these levels hold, I will consider Bitcoin to be in an overall bull market. The Stochastic RSI on the 1-day chart has reached the oversold territory, which usually precedes an upwards push.
The low time frame Bitcoin market structure is bearish. The price action has formed a downtrend since the latest all time high, and is acting accordingly. Key AVWAP supports of the downtrend are the current AVWAP levels of the previous highs, namely 61500 and 63500. The downward trendline currently is at 65200, providing further support for the shorts. As long as the price action stays under the trendline, the low time frame chart will remain bearish.
Predator Charts
The LTF bearish tendencies has started to show on the HTF Predator chart. The indicator is signaling bearish momentum, but the candle has not closed yet. Price is still above the ascending 20-period moving average. This timeframe has not turned bearish yet.
The 1-day Bitcoin Predator chart is bearish. Indicator has been bearish now for more than two weeks, and the price has again lost the 20-period moving average.
The low time frame Predator chart is has been bearish for days. Indicator is bearish, 20-period moving average is descending, and the price is way below the moving average level.
Summary
According to the high time frame market structure Bitcoin is still in an uptrend, but the bears have taken control of the low time frame charts. To uphold the long term bullish market, Bitcoin shall hold the 50000–52000 region. To beat the bears on the short time frames, the bulls have to reclaim territory above the descending trendline currently at 65200.
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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.
