Home CryptocurrencyAnalysis Bitcoin’s weekly chart is sending bearish signals at the open

Bitcoin’s weekly chart is sending bearish signals at the open

by SuperiorInvest

In this episode of NewsBTC’s daily technical analysis videos, we take a closer look at the various bullish signals in bitcoin that have fired with the latest weekly open. However, the cryptocurrency market is not out of the woods as it needs to confirm the signals with a strong close this week.

Watch the video below:

VIDEO: Bitcoin (BTCUSD) Price Analysis: September 12, 2022

Last night we closed for the week bitcoin and have already added almost 3% to the 16% from the lows reached during last week’s candle. As a result of this move, several bullish signals appeared on the open candle. However, it is imperative that BTCUSD remains above current levels for signals to be confirmed by a full weekly candle close.

Investigating BTCUSD Weekly Buy Signals

The weekly started a bullish transition LMACD. Even a weekly candle close and a confirmed crossover can be a trap, as we saw on the way down on the BTCUSD weekly charts. However, it is the location from which the crossover takes place that is noteworthy.

LMACD’s bullish crossovers during past bear markets at such a level led to a long-term bottom and a sustained bull run. The momentum in both 2018 and 2014 bear markets has fallen to the same level.

BTCUSD weekly is also working on a buy signal at Relative strength indexaccording to the tool maker, J. Welles Wilder Jr. A buy signal is activated when the RSI drops below oversold conditions and then rises below the threshold.

If the RSI does not return to oversold conditions on the next pullback, we have one important factor in generating a buy signal. The RSI must then reach a higher high. A comparison with the bear market day of 2018 shows exactly this behavior and its impact.

Comparing past Bitcoin bear market buy signals | Source: BTCUSD on TradingView.com

Reversal Targets A retest of $32,000 support has turned into resistance

If Bitcoin’s bottom is in at all, the next logical target would be to close above the center firstBollinger Bandsand then pushes to the opposite side of the belt for about $32,000.

On IchimokuThe Kijun-sen is almost at the same level as the upper Bollinger Band, highlighting a clear level of importance in the weekly timeframes. Similar to the last bear market, Bitcoin just occupied the Tenkan-sen and after the bottom was already there was a reversal in the cloud.


Indicator dynamic resistance could give a target of $32K | Source: BTCUSD on TradingView.com

Related reading: WATCH: Bitcoin, Wyckoff Theory and Composite Man | BTCUSD September 8, 2022

Could A Three-Month, 300% Rally Be In The Cards For Bitcoin?

Since the condition from the 2018 bear market bottom currently looks similar, let’s use the bars pattern to project the 2019 rally from where we are currently.

The result is a return to historical highs. If you recall, BTC’s rally in 2019 lasted only three months profit 300%. It set a new high almost another 18 months later.


The 2019 rally resulted in over 300% growth | Source: BTCUSD on TradingView.com

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Featured image from iStockPhoto, Charts from TradingView.com

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