In this episode of NewsBTC’s every day technical evaluation movies, we’re taking a look at one of the best likelihood Bitcoin and the remainder of crypto has had for a bullish week in a very long time.
Take a take 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 at present. But the shortage of motion is welcome after almost a 12 months of falling costs.
Bitcoin Gears Up For Big Move, But Which Direction?
Despite the shortage of value motion, every day timeframes are displaying 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 way in which. Bitcoin value is attempting to push above the middle-BB which might enhance the chance of upside if the bands start to carry.
The every day LMACD can be just under the zero line. Pushing above it turns Bitcoin totally bullish on the every 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 past, failed try to interrupt out, BTCUSD had weakening momentum and didn’t shut past three bullish ticks.
Bitcoin value can be engaged on a breakout of weekly downtrend resistance. This just isn’t the ultimate downtrend resistance on log scale, however there’s nonetheless significance right here. The Relative Strength Index on weekly timeframes may very well be signaling an early breakout of a number of downtrend traces, which may quickly result in crypto making a transfer.
Why A Reversing Dollar Means Upside For Crypto
A potential reversal may very well be in progress on the DXY Dollar Currency Index. The power of the greenback has been what has beat up the inventory market and crypto during the last a number of months. With the greenback dropping 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 are able to see instantly why a reversal within the DXY may very well be helpful 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 may show to be bullish for cryptocurrencies and different danger property because the greenback lastly corrects.