Chartpunk

Nov 23, 2021

4 min read

Bitcoin Chartpunk Daily Alpha #57

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.

HTF Market Structure

Bitcoin HTF Market Structure 2021.11.23.

On the high time frame chart the price of Bitcoin is very close to the bottom of the ascending channel of July. The oversold stochastic RSI levels on the 1-day and 3-day charts, and the vicinity of the trend line provide the bulls with reasonable hope for a bounce. The 50000–53000 zone is still the ultimate support of the current uptrend, while the zone of 58800–61000 is clear resistance in case of a bullish move. HTF chart is still bullish to me, and I think it is getting to create a nice entry point for dollar cost averaging long term investors.

LTF Market Structure

Bitcoin LTF Market Structure 2021.11.23.

The low time frame Bitcoin chart is still controlled by the bears. The downtrend of November 10 has a current trendline level of 61500 and AVWAP level of 60200. These, and the 58900 AVWAP level of the November 15 bounce from trendline are the levels which the bears should hold in order to preserve the bearish momentum on the LTF charts

Summary

The high time frame chart is still bullish, as long as it holds the support zone of 50000–53000. In the short term however the bears are in control, which could only be invalidated by strong bullish price action above the 61000–61500 level.

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 long time frame market structure is indicating a solid trend, and intact price action is supported properly by the low time frame charts.

What are my key indicators?

I am using trendlines, channels and moving averages to identify market structure and to spot trends. In crypto trading my core moving average indicators are the 50 and 128 daily moving averages. I am also using anchored volume weighted average price (AVWAP) analysis to identify support/resistance levels.

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.