In this episode of NewsBTC’s daily technical analysis videos, we examine Bitcoin price action on Halloween night to see if the market is in for any tricks or treats.
Check out the video:
VIDEO: Bitcoin Price Analysis (BTCUSD), October 31, 2022
Bulls Run Into Resistance, But Bears Have Yet To Scare
Last night was a weekly close in Bitcoin, but the top cryptocurrency narrowly missed closing above the mid-Bollinger Band –– a sign that a bullish trend might be brewing that is now at risk of rejection.
The bear market of 2018 saw the close below the mid-BB lead to more consolidation and a bigger breakout. It could again happen. A rejection would bring about nightmare results.
Could Bitcoin bulls be in peril | Source: BTCUSD on TradingView.com
Similar Reading: Bitcoin Bollinger Band Breakout starts To Squeeze Shorts | BTCUSD Analysis October 26, 2022
Bitcoin Takes Final Nail in Crypto Winter Coffin
Bitcoin did manage to escape beyond the Tenkan-sen using the Ichimoku, which during the last bear market was enough to put the final nail in bear’s coffins.
If crypto bulls are indeed out for blood, pushing prices to the Kijun-sen near $30,000 would inflict serious pain on the short side of the market –– which is currently a crowded trade.
Will BTC Survive All Hallows’ Eve?
Only hours remain for the October month candle to close with a potential tweezer bottom –– similar to the candle structure from back in December 2018.
Bitcoin’s month will end with a weakening bearish monthly momentum, for the first-time in almost a full year. Although the LMACD histogram is bearish after its 14th month of existence, the momentum suggests that it will remain so for at least two more months.
Also, we are looking forward to next month when the Fisher Transform will cross. It is useful for predicting tops and bottoms of markets and can also be used in the future to predict them. Cyclical tools show that the turning point could arrive before the end of the year, but it isn’t quite here yet.