In this episode of NewsBTC’s daily technical analysis videos, we are looking at the best chance Bitcoin and the rest of crypto has had for a bullish week in a long time.
Check out the video:
VIDEO: Bitcoin Price Analysis (BTCUSD), October 17, 2022
Bitcoin is trading at an average of $19,000. There has been little change in cryptocurrency. After nearly one year of declining prices, the lack of movement in crypto is unexpected.
Bitcoin Prepares for Big Moves, But In Which Direction?
Even though there has been no price movement, the daily timeframes show signs of a possible breakout to the upside. Bollinger Bands are tight again, which means a large move may be on its way. Bitcoin’s price has been pushing above the middle-BB. This would raise the likelihood of an upside move if the bands start to rise.
The LMACD daily is just below the line. Bitcoin becomes fully bullish if it pushes above the zero line.
Bollinger Bands indicate a major move. Source: TradingView.com, BTCUSD| Source: BTCUSD on TradingView.com
BTCUSD Downtrend Line Broken As Weekly Momentum Strengthens
The weekly momentum closed bullish the second week running. This opened with the LMACD histogram showing green momentum increasing. A new uptrend is possible if bulls close the third week consecutively. Note how during the last, failed attempt to break out, BTCUSD had weakening momentum and didn’t close beyond three bullish ticks.
The weekly downtrend resistance is being broken by Bitcoin. Although this isn’t the last downtrend resistance, it is significant. Relative Strength Index for weekly timeframes may signal an early breakout from multiple downtrend lines. This could lead to crypto moving soon.
What a Reversing Dollar means for Crypto
The DXY Dollar Currency Index could see a possible reversal. Over the past few months, crypto and the stock markets have been beaten by the strength of the US dollar. Bitcoin is also in the frame of a possible reversal after the dollar lost the Relative strength Index support line.
By layering BTCUSD alongside the DXY we see why Bitcoin could benefit from a reverse in this currency. While the DXY could be peaking, the 2-week Bitcoin chart shows that the falling wedge pattern is still in place. Only 7 days remain in the 2-week timeline for BTC as well as DXY. This week could turn out to be bullish on cryptocurrencies and risk assets as the dollar begins to correct.
