In this episode of NewsBTC’s daily technical analysis videos, we take a look at Bitcoin price action following today’s selloff in reaction to August CPI numbers.
Have a look below at the video.
VIDEO: Bitcoin Price Analysis (BTCUSD): September 13, 2022
Today also happened to be the August CPI numbers releases day. Volatility was therefore expected. The Consumer Price Index went up by 0.1% month over month from July, leading to an immediate selloff in anything that wasn’t the dollar.
BTCUSD Buy Signals At Risk After CPI Selloff
This selloff was very immediate. Bitcoin’s value dropped by over 6% within a matter of minutes, according to the one-minute candle. CPI numbers are released in seconds. Sell orders can be executed instantly.
The selloff is notable as it is putting many of the buy signals from the weekly open in yesterday’s video at risk. The signals were confirmed by closing this week.
It was quite the surprise that the 2nd CPI numbers were finally released. Source: TradingView.com, BTCUSD| Source: BTCUSD on TradingView.com
Bitcoin Bottom Fractal Features A Similar Selloff Before Breakout
The 2018 Bitcoin bear market bottom had a selloff that was very similar to today’s price action and resulting candlestick.
The only thing you need to do is place an arrow at each of these critical moments.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
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Is The Top Crypto Closer Year Possible at $40K
A fractal placed under the price action shows that the timing of the pullback today looks very much like the 2018 bear markets bottom. Bitcoin did not make new lows in this case, rather it moved sideways over several weeks to continue drawing short-term interest.
In three months, the cryptocurrency gained more than 3000%. Bitcoin could reach $40,000 by the end of the year if the fractal is not stopped.
Is BTC expected to close at $40K by the end of this year?Source: BTCUSD from TradingView.com | Source: BTCUSD on TradingView.com
There’s more down side to it. How The Bearish Situation Looks
Of course we’d be foolish to rule out more downside considering the bearish macro backdrop. If we take the last correction as a fractal, it would be possible to make a road map down the last leg.
Bitcoin is just a few thousand dollars off the peak in 2019, and this fractal will complete an expanded flat-pattern.
How could another leg down look? Source: BTCUSD at TradingView.com| Source: BTCUSD on TradingView.com
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Featured Image from iStockPhoto. Charts from TradingView.com