Welcome to the primary episode of NewsBTC’s all-new each day technical evaluation movies. In the primary episode, we’re taking a look at Bitcoin price action utilizing the weekly BTCUSD worth chart.
Specifically, this episode appears to be like at Bitcoin’s “most profitable buy signal” in its total historical past: the hash ribbons. In addition, we analyze weekly momentum utilizing the logarithmic MACD to attempt to perceive if a backside might be in. Take a have a look at the video under.
VIDEO: Bitcoin Price Analysis (BTCUSD): August 22, 2022
All About The Hash Ribbons
The Hash Ribbons have been created by Bitcoin analyst Charles Edwards. They are a pair of shifting averages based mostly on the Bitcoin hash price and mining problem, and sign when miners are capitulating. When this section ends, a purchase sign is issued. In reality, its purchase sign has been referred to as Bitcoin’s most profitable buy signal, producing a number of thousand p.c ROI on common every time it triggers. The sign is much more worthwhile when it seems previous to a Bitcoin halving
The hash ribbons have triggered a purchase sign | Source: BTCUSD on TradingView.com
With the hash ribbons purchase sign on the each day, weekly timeframes turn out to be extra attention-grabbing in anticipation of a potential backside. Although a backside might be in already, the market has traditionally continued to attract down even after the hash ribbons purchase sign.
Measuring Momentum With LMACD
Yesterday gave us a contemporary weekly shut in BTCUSD. In explicit, we will probably be utilizing the Logarithmic MACD in our evaluation. The log model of the MACD offers higher comparative evaluation throughout previous cycles.
Although the MACD had opened inexperienced the week prior, the late-week selloff uncrossed the bullish crossover and has compelled momentum sideways. The weekly MACD is at historic bear market readings. Diverging down additional can be unprecedented and sure take Bitcoin down under $17K.
Will momentum cross upward? | Source: BTCUSD on TradingView.com
However, if bulls can full the bull cross, in earlier cycles the change in momentum was sufficient to kickstart a bullish impulse. The MACD is at present one of the crucial necessary indicators to observe on weekly timeframes. Although a bullish crossover might affirm the underside, the MACD will get a popularity for being a lagging indicator and subsequently the underside might be in lengthy earlier than the bull crossover confirms.
The Ten Year Trend Line
Adding credence to a possible backside, Bitcoin weekly is sitting at a long-term development line lasting over a decade long. The long run development line has been touched on 5 separate events together with the 2014 bear market backside and Black Thursday in March 2020. Losing this development line might be disastrous for the cryptocurrency market.
Will this practically ten yr lengthy development line maintain? | Source: BTCUSD on TradingView.com
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Featured picture from iStockPhoto, Charts from TradingView.com
