Chartpunk Bitcoin Alpha #71

High Time Frame Market Structure

Bitcoin 1-week 2022.01.16.
Bitcoin 1-year Linear Regression Channel 2022.01.15.
Bitcoin HTF AVWAP Analysis 2022.01.15.
Bitcoin HTF Moving Averages 2022.01.15.

Multi Time Frame Momentum Analysis

Bitcoin MTF Momentum Chart 2022.01.15.

Low Time Frame AVWAP Analysis

Bitcoin LTF AVWAP Chart 2022.01.15.

Multi Time Frame Predator Chart Analysis

Bitcoin MTF Predator Chart 2022.01.15.

Summary

From a trend trading perspective I still do not see any reason for opening long positions in Bitcoin for now. Price action is clearly bearish, and anything under $52000 is bearish to me from a trend trading perspective. The fact that the price action is in the bottom zone of the 1-year Linear Regression Channel could be a reason for long term investors to DCA into Bitcoin positions. I am seeing positive signs which may signal bear exhaustion, but the bulls are not showing convincing power yet. I am closely watching the 3-day RSI, as it has a clear chance to reach oversold territory, and that has been macro bottoming signal in the history of Bitcoin.

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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 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.

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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.

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Chartpunk

Chartpunk

41 Followers

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