Bitcoin Chartpunk Daily Alpha #7
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
The 8-hour chart, which I am using as a short-term indicator is clearly bullish. The Predator indicator is in solid green. The 20-period moving average is at 44000, and is rising decently. Price is way above the 20-period moving average. Nothing bearish here at all. There might be some pullback after the big move of yesterday, but 43600–44000 area is a very strong support on this chart.
1-Day Bitcoin Chart
The 1-day chart just flipped into bullish. Predator indicator gave us our second green candle close. The 20-period moving average is at 44800, and rising. Price is way above the 20-period moving average. Based on this chart, the zone of 43800–44800 should serve as a nice support area in case of a correction. 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
Our 3-day chart is not far away from being bullish. The Predator indicator still has not flipped into green, but should not be far away from that. The 20-period moving average level is 46700, and the moving average has been rising constantly since late July. Price is comfortably above the moving average line. A close today above the 46700 line would be a decisive moment for my long entry.
I am really close to opening long positions. I entered some buy orders at the levels of 47000 and 45600, based on the Fibonacci resistance lines of yesterday’s big push. In case tomorrow the 8H and 1D charts remain clearly bullish, and we get to a close of the 3D chart above the 20-period moving average of 46700 then I will consider the long trend established. In this case I will start allocating sizable long positions. I consider the level of 43800 highly decisive support of this long scenario in the mid-term.
Global Bitcoin News
Famous trader and Bitcoin analyst PlanB just tweeted, that according to his data the current Bitcoin macro bull market has at least 6 months to go. Fingers crossed…
The International Monetary Fund (IMF) published a post, according to which “Crypto Boom Poses New Challenges to Financial Stability”. They further note that the crypto ecosystem falls under different regulatory frameworks in different countries, making coordination more challenging. Naturally they do not forget to swing the “money laundering” and “terrorist financing” keywords which have served them rather useful during the abolition of global bank secrecy during the last decade.
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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.
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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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!
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.