Bitcoin Chartpunk Daily Alpha #8

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

Bitcoin 8-hour 2021.10.04.

We have seen a nice consolidation at the top level of the short squeeze and mega push from two days ago. Predator indicator is green, the nicely ascending 20-period moving average is way below the price. A bull flag pattern has also been visible, which is also a bullish sign, and yesterday evening it broke to the upside, but then the price pulled back a bit. Notice how the 48300 level is being established as a resistance. In case of a potential pullback I would say that the 44700 area of the moving average, and the Fibonacci resistance at 43800 could hold the price. Time-frame is bullish.

1-Day Bitcoin Chart

Bitcoin 1-day 2021.10.04.

Same as with the 8-hour chart. The Predator indicator is green and the price is nicely above the ascending 20-period moving average. The area between the MA level of 45000 and the Fibonacci level of 43800 should serve as a nice support in case of a pullback, also a nice entry for a long trade.

3-Day Bitcoin Chart

Bitcoin 3-day 2021.10.04.

The Predator indicator is still not fully bullish, but we just made a great close back above the 20-period moving average. Based on this time-frame, the bull run that has started in late July is still intact, our 20 MA line has never started descending. Predator has not flipped bearish once, and we just made it safely back above the 20-period moving average. Chart is bullish.

1-week Bitcoin Chart

Bitcoin 1-week 2021.10.04.

At the beginning of each week it is useful to take a look at the weekly chart. Good news is that the 20-period moving average started ascending again, indicating a long trend. Predator indicator has not flipped bullish yet, in fact it is calling for some caution. The weekly perpective is not an all-out bullish scenario, but the nice bounce from the Fibonacci resistance and the rising 20MA give reasons for optimism.

Summary

All of my three main time-frames (8H, 1D, 3D) support a long play, so it is time to start stacking some Bitcoin. I have started opening spot positions, and I have posted buy entries at the levels of 47000 (above the 20MA of the 3D time-frame) and 44000 (above the Fibonacci resistance). I find it both amazing and strange that the big push from two days ago has not been followed by a significant pullback. If it stays like that, then it is showing enormous market strength. I would still find it reasonable to retest the levels of 47000 and possibly 44000 before a further long run, this is the area where I wish to build up my long portfolio.

One more reason supporting the long entries: the price has been able to leave the Ichimoku cloud to the north both on the 1-day and 3-day charts. A lot of traders are playing this as a long entry, so this is one further reason to be optimistic.

Price has closed above the Ichimoku cloud on the 1-day chart
And we also had a close above the Ichimoku cloud on the 3-day chart

As said above, I have opened the first spot longs, posted further long entries, so here it is guys: we are long, let’s go!

Like the newsletter? Do not miss any Daily Alpha, follow Chartpunk on Facebook!

Or do you prefer Reddit? No probs, give us a follow here!

Okay, you are a Twitter person, gotcha… Give us a follow please!

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.

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.

Trading and hodling bitcoin since 2015 I Focusing on longterm trends I No alpha for daytrades