Bitcoin Crypto News

Can Bitcoin Withstand Continued Dollar Strength? | BTCUSD September 22, 2022

In this episode of NewsBTC’s daily technical analysis videos, we examine yesterday’s perfected TD9 buy setup in Bitcoin and other potentially bullish signals.  We also compare BTC against the dollar using the DXY Dollar Currency Index. Take a look at the video below: VIDEO: Bitcoin Price Analysis (BTCUSD): September 22, 2022 In yesterday’s video, we warned of a new low being made due to the appearance of a TD9 buy setup. These signals can be perfected when the candle makes a lower low. Here is how that played out. Related Reading: Bitcoin Reacts To 75 Basis Point Fed Rate Hike | BTCUSD September 21, 2022 Market Timing Tool Triggers Perfect Buy Setup During FOMC Aftermath Given the several shakeouts and the explosive intraday volatility, taking a position based on the the TD9 buy setup was not easy. The TD Sequential has also brought its resistance level down to roughly $22,700. If price can tag the red line, we could have a low timeframe reversal. A bullish divergence on the Relative Strength Index and LMACD potentially back up this bullish signal. Were bulls bold enough to take action at the TD9 buy setup? | Source: BTCUSD on TradingView.com Building The Case For A Possible Bitcoin Bear Market Bottom Momentum is also right on the zero line on weekly timeframes, where those same bullish divergences could be building. The doji candle is indicative of indecision in the market, and could be a pause prior to a reversal, or strong continuation to the downside. Weekly momentum has also fallen to the same level where past reversals formed. A bullish crossover might be all it takes to confirm a bottom is already in. In 2018, once crossed, Bitcoin took off like a rocket with more than 300% ROI in three months. Comparing former bear market bottoms using the Relative Strength Index, each time the indicator reached oversold conditions on weekly timeframes, the bottom was already in. The PPO Percentile Rank which helps find tops and bottoms, shows that Bitcoin has been exhibiting bottom-like behavior. Moving out from the green range often has been the start of a new bull run. Several indicators could suggest the bottom is in | Source: BTCUSD on TradingView.com Related Reading: When Will Crypto Winter Thaw Out? Total Crypto Market Cap (TOTAL) September 20, 2022 BTC Versus USD: It All Comes Down To The Dollar What happens to Bitcoin at this point has more to do with the dollar. The dollar is one half of the BTCUSD trading pair, making it especially important. The dollar has been in a powerful uptrend, as you can see in the daily chart. However, momentum has been making lower highs suggesting that the underlying strength is weakening. The DXY dollar currency index is also potentially forming an ending diagonal, which looks much like a rising wedge. These potentially bearish signals could create a reversal in the dollar that allows Bitcoin to bounce. A comparison with Bitcoin offers a potential example of what might happen in the dollar. After a failed upthrust, price action reversed and a high was put in. Is the DXY forming an ending diagonal? | Source: BTCUSD on TradingView.com Learn crypto technical analysis yourself with the NewsBTC Trading Course. Click here to access the free educational program. Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com

Bitcoin Crypto News

Why “Low” Capitulation Might Hint At More Pain For The Bitcoin Price

The Bitcoin price is stuck in a tight range following yesterday’s U.S. Federal Reserve (Fed) announcement on monetary policy. Macro forces have taken over global markets increasing the correlation across all asset classes. Related Reading: Bitcoin Dumps After Revisiting June Lows, Where Does The Bottom Lie? For a deep dive into how the Fed 75 basis point hike affected the Bitcoin price, and a look into the crypto market’s internal dynamics, check out the analysis from our Editorial Director Tony Spilotro. Link below: At the time of writing, the Bitcoin price trades at $18,900 with a 2% and 7% loss in the last 24 hours and 7 days, respectively. The entire crypto top ten by market cap is recording losses on similar time periods with the exception of XRP which continues to trend to the upside with a 29% gain over the past week. Why The Bitcoin Price Needs To See More Capitulation As NewsBTC reported yesterday, the crypto market has completed every major price catalyzer in the short term with the Ethereum “Merge”. Now, the market is moving in tandem with macroeconomic factors and with traditional markets. This might provide room for a relief rally or for more downside if major financial indexes trend in one direction or the other. According to Jurrien Timmer, Director of Macro for investment firm Fidelity, there has been “little capitulation” for the S&P 500. Despite the fact that the equity index has been on a downtrend since reaching an all-time high at 4,819 into its current levels at 3,837, Timmer believes the market has been resilient and might need to see more capitulation before forming a bottom. Via Twitter, the expert said the following sharing the chart below: It’s surprising how little capitulation there has been in the market. Yes, the sentiment surveys are all negative, but actual flows have not been. This seems consistent with the lack of volatility in the market (…). The above coincides with analyst Dylan LeClair look into previous Bitcoin cycles. The analyst believes BTC forms a bottom following a “final capitulation” of the mining sector. This event might lead to a crash in the network hashrate, which is yet to be seen. LeClair said: I believe with macroeconomic conditions as the catalyst, something similar will repeat. We’re not there yet. Will Bitcoin Re-Test Its 2020 Lows? But how low can the Bitcoin price and the crypto market crash? The benchmark cryptocurrency is already trading 80% lower than its all-time high, $69,000. This has historically marked a bottom for BTC’s price and has formed a barrier against further downside. In that sense, rather than a fresh leg down, the cryptocurrency might see more sideways movement across 2022 as the Fed continues to hike interest rates and traditional markets trend to the downside. This thesis might be supported by a potential downside pressure for the U.S. dollar (DXY). Related Reading: Bitcoin Taps $18,100, Why This Is Dangerous For The Market? The currency has been trending higher, moving opposite to the Bitcoin price and risk-on assets, but seems to be at a critical resistance area. This might provide the crypto market with room for a relief rally. As seen in the chart below, the DXY Index could be above to see a spike in selling pressure.

Bitcoin Crypto News

Bitcoin Reacts To 75 Basis Point Fed Rate Hike | BTCUSD September 21, 2022

In this episode of NewsBTC’s daily technical analysis videos, we look at the volatility in Bitcoin price action following the FOMC meeting today where the Federal Reserve announced a 75 bps rate increase. Take a look at the video below: VIDEO: Bitcoin Price Analysis (BTCUSD): September 21, 2022 Bitcoin price action has been ultra volatile before and after the United States Federal Reserve announced its decision to increase rates by 75 basis points. Although the market had been considering as much as a 100 basis points increase from the increasingly hawkish Fed, the central bank ultimately chose a slightly softer touch. Fed Chair Jerome Powell expects rate increase to continue well into next year, with inflation not returning to the normal 2% rate until at least 2025. Related Reading: When Will Crypto Winter Thaw Out? Total Crypto Market Cap (TOTAL) September 20, 2022 Crypto Market Gets Volatile Before & After Fed Rate Hike Decision To demonstrate the incredibly powerful volatile proper to the announcement, Bitcoin plunged by 6% in only one minute of trading. Less than an hour later, the top cryptocurrency retraced almost the entire move, yet is now struggling to keep its head above $19,000 support. Not just Bitcoin, but anything that trades against the dollar moved in a similar manner. Bitcoin price plunged 6% in a single minute of trading action today | Source: BTCUSD on TradingView.com TD9 Buy Signal Appears On Bitcoin, But Beware Of Another Low The Bitcoin daily is working on a TD9 buy setup. Beware of the series perfecting, which requires a lower low beyond $18,300 where bull staged a defensive move earlier this week. A TD9 buy setup has triggered on the daily, but another low makes perfect | Source: BTCUSD on TradingView.com Related Reading: WATCH: Bitcoin Bloody Monday Leads To Reversal Hammer | BTCUSD September 19, 2022 Tug-of-War On Weekly Timeframes Between Bears And Bulls Bitcoin briefly pushed back into bull territory on the weekly LMACD histogram. A bullish crossover at these levels on weekly timeframes has led to a bottom being put in in the past. Cyclically, it is clear that this is a level to watch for a bullish reversal. By the time we finished the video above, Bitcoin plunged back down to the below the $19,000 level and bears successfully uncrossed the LMACD crossover yet again. A tug of war is going on, and whoever wins will have the upper hand when it comes to momentum. Bears continue to prevent a bullish crossover, but bulls are trying | Source: BTCUSD on TradingView.com Learn crypto technical analysis yourself with the NewsBTC Trading Course. Click here to access the free educational program. Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com