In this episode of NewsBTC’s all-new daily technical analysis videos, we are once again looking at the Bitcoin price monthly chart as well as the monthly chart on Ethereum, and major stock market indexes that have a high correlation with crypto.
Check out the video.
VIDEO: Bitcoin Price Analysis (BTCUSD): August 31, 2022
There isn’t much to report on since yesterday’s video, so all eyes remain on the pivotal monthly close in Bitcoin and other risk assets. As you learned in yesterday’s video, the BTCUSD monthly is on a TD9 buy setup, and could risk a lower low which could perfect the series. In the next video, we take one last look at monthly timeframes ahead of tonight’s close.
Take a final look at The Bitcoin Monthly Support line (And Other Cryptocurrencies).
Tonight’s August monthly close is critical across all risk assets – cryptocurrencies and stocks included. Bitcoin, Ethereum and the major stock indexes were rejected by support after an unsuccessful attempt to recover. This support level can be held for the first steps in recovery. Losing it will indicate additional downside.
In the chart below, we can see that all that is separating BTCUSD from disastrous new lows is one horizontal line – former all-time high resistance turned support. Crypto could experience a prolonged bear market if the support level does not hold.
The S&P 500 and Nasdaq losing their support levels has even more dangerous implications, possibly adding fuel to a recession in the United States.
Bitcoin holds on to a support level at key resistance | Source: BTCUSD on TradingView.com
There is hope for the bottom with Cyclical tools
While it is clear that Bitcoin and risk assets are in a bad spot at the moment, the cyclical behavior that began with the initial bear drawdown of BTCUSD may offer some hope that all is not lost and that a bullish phase will soon begin.
The video compares past cycles with the LMACD (Relative Strength Index), Stochastic and Average Directional Index. This could be a hint at how the monthly candle closes tonight, as these tools might indicate a bottom. The monthly candle has less than an hour left, so it’s going to be quite a race.
This cyclical behavior of Bitcoin is also examined. Source: BTCUSD at TradingView.com| Source: BTCUSD on TradingView.com
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Featured Image from iStockPhoto. Charts by TradingView.com