In this episode of NewsBTC’s daily technical analysis videos, we review a variety of technical and fundamental signals on the Bitcoin price monthly chart to see if we are getting closer to a bottom in crypto.
Check out the video:
VIDEO: Bitcoin Price Analysis (BTCUSD), October 3, 2022
Bearish BTC Momentum Begins To Wane… Maybe
On the LMACD histogram, October’s monthly candle began with pink. In the past, this signal put bear markets into hibernation for at least one year.This suggests a significant shift in momentum. To confirm the Bitcoin monthly chart’s change of color, October must be bullish.
While the monthly Relative Strength Index still remains at its lowest point in Bitcoin’s history, it is slowly moving towards the bottom of an upward sloping channel. This same slope connects past RSI peaks.
Bitcoin's bearish momentum may be waning| Source: BTCUSD on TradingView.com
Bitcoin Investors Might Be Overcome Their Loss
It appears that the Coppock Curve is now at the exact same place as previous bear markets bottoms. The time cycle tools suggest that there may be some rhythmic behaviour to Bitcoin.
E.S.C. invented the Coppock Curve. Coppock was asked to help investors identify long-term purchasing opportunities by his church. It is based on the idea that it takes between 11 and 14 months for a bear market to end, as that’s roughly how long it takes for a human to get over mourning a significant loss.
Satoshi Called The Bottom in Crypto
Another possible bottom signal isn’t technical, but fundamental. At the end of 2018, the Bitcoin price was in the lower cost range for production.
It is because commodities have prices that are close to the costs of production. This is noteworthy. Even Bitcoin’s creator, Satoshi Nakamoto spoke of this.
“The price of any commodity tends to gravitate toward the production cost. Production slows down if the price falls below cost. Selling more and creating more profit is possible if the cost of production is high. At the same time, the increased production would increase the difficulty, pushing the cost of generating towards the price.”