In this episode of NewsBTC’s day by day technical evaluation movies, we’re the very best likelihood Bitcoin and the remainder of crypto has had for a bullish week in a very long time.
Take a have a look at the video beneath:
VIDEO: Bitcoin Price Analysis (BTCUSD): October 17, 2022
There continues to be not a lot motion in crypto, with Bitcoin buying and selling at round $19,500 presently. But the shortage of motion is welcome after almost a yr of falling costs.
Bitcoin Gears Up For Big Move, But Which Direction?
Despite the shortage of worth motion, day by day timeframes are exhibiting some indicators of an impending breakout, presumably to the upside. The Bollinger Bands are as soon as once more tight as may be, which is a sign an enormous transfer is on the best way. Bitcoin worth is attempting to push above the middle-BB which might improve the chance of upside if the bands start to raise.
The day by day LMACD can also be slightly below the zero line. Pushing above it turns Bitcoin totally bullish on the day by day timeframe.
The Bollinger Bands counsel an enormous transfer is coming | Source: BTCUSD on TradingView.com
BTCUSD Downtrend Line Broken As Weekly Momentum Strengthens
Weekly momentum has additionally closed bullish for the second week in a row, opening with inexperienced momentum strengthening on the LMACD histogram. If bulls can shut a 3rd week in a row, a brand new uptrend ought to materialize. Note how over the last, failed try to interrupt out, BTCUSD had weakening momentum and didn’t shut past three bullish ticks.
Bitcoin worth can also be engaged on a breakout of weekly downtrend resistance. This shouldn’t be the ultimate downtrend resistance on log scale, however there may be nonetheless significance right here. The Relative Strength Index on weekly timeframes might be signaling an early breakout of a number of downtrend strains, which might quickly result in crypto making a transfer.
Why A Reversing Dollar Means Upside For Crypto
A potential reversal might be in progress on the DXY Dollar Currency Index. The energy of the greenback has been what has beat up the inventory market and crypto over the past a number of months. With the greenback shedding a Relative Strength Index assist line and confirming it as resistance simply as a possible excessive timeframe night star reversal kinds on the DXY 2-week, Bitcoin has an opportunity at reversing as nicely.
Upon layering in BTCUSD behind the DXY, we will see instantly why a reversal within the DXY might be useful for Bitcoin. All whereas the DXY is probably topping out, the 2-week Bitcoin line chart is breaking out from a falling wedge sample. With lower than 7 days left to go on the 2-week timeframe for each BTC and the DXY, the subsequent week might show to be bullish for cryptocurrencies and different danger property because the greenback lastly corrects.
