Bitcoin Chartpunk Daily Alpha #54
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.
Yesterday we have finally seen some signs of bull revival, as the price has risen to the AVWAP level of the September 29 push. Currently at 58900, this is a resistance that the bulls need to take over and turn into support. Stochastic RSI has started to cross upwards in oversold territory, which favors the bulls. The support of the long term bullish momentum is the July 20 trendline currently at 52300, and the AVWAP level of the same trend at 50100. I also consider the 53000 swing high as strong support, so in my opinion the 50000–53000 range should serve as the ultimate support of the recent long term bullish trend.
The low time frame Bitcoin chart is controlled by the bears. The short players have supports at the 59500 and 61300 AVWAP levels. The downwards trendline further supports the bears at 63100. Bulls should notice that the approach of the 59500 level brought the Stochastic RSI to the overbought territory, showing signs of bull exhausting at around bear support level. Short term price action is clearly bearish.
The high time frame Bitcoin chart with the Predator indicator is at a crossroad. The indicator is about to give us its first red close since July. Price is struggling to hold the ascending 20-period moving average. Chart is neutral.
The 1-day Predator chart is bearish. Price action is way below the 20-period moving average and the indicator is red.
The low timeframe Predator chart is bearish. Price action is below the 20-period moving average and the indicator is bearish.
The low timeframe Bitcoin charts are controlled by the bears. In order to break the immediate bearish momentum, the bulls should confidently push the price action above the 63000 bearish trendline support. The high time frame market structure is still bullish, where the 50000–53000 level should serve as ultimate support. Stochastic RSI is oversold on HTF charts, which could assist in building some bullish momentum.
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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.