In this episode of NewsBTC’s all-new daily technical analysis videos, we are looking at the the impact an upcoming speech from US Fed Chair Jerome Powell could have on Bitcoin price action.
Have a look below at the video.
VIDEO: Bitcoin Price Analysis (BTCUSD): August 25, 2022
Jerome Powell is the Chair of The US Fed Reserve The future economic outlook will be the focus of my speech at the Jackson Hole central bank conference. Bitcoin can sink further depending on whether that outlook is optimistic or negative.
Daily BTCUSD is Dangerous, Bears Still Dominant
On daily timeframes the picture overall isn’t looking very positive for BTCUSD and could imply that the market should expect negative news tomorrow. Starting with Ichiomoku we see Bitcoin trading lower than the Tenkan-sen as well as the Kijun-sen. Both of these lines recently became bearish.
Also, the daily LMACD shows momentum for bears. However, the bearish momentum is waning but it could rebound tomorrow as markets value in Powell’s views about the US economy.
The Average Directional Index confirms that the bears have control and is currently at 20. If the reading falls below 20, it would indicate that the trend is weakening. However, retesting and returning to a higher level could spark a bearish trend.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Weekly Momentum Highlights the Pivotal Point of Turning Point
The pivotal moment for Bitcoin and other crypto markets is also shown by the switch to the same tools in the weekly timeframe. The Tenkan-sen was broken from the top to the bottom. Also, the LMACD remains bearishly crossed and is ready to cross or diverge further downward.
Although the ADX still shows bears as the dominant group, the trend is starting to flatten. This could suggest that things are better in longer time frames.
With only a week remaining in the month of August, combined with both Powell’s comments and the weekly timeframe at a pivotal turning point, we should get a clearer picture soon regarding if a bull trend is blossoming, or if the bearish trend is about to worsen.
Weekly momentum may cross over or slow down | Source: BTCUSD on TradingView.com
Market Receives Mixed Signals From Monthly Ichimoku
Bulls may have some optimism ahead of the month’s Ichimoku, as it is an intriguing picture. Both the Tenkan-sen (and Kijun-sen) remain bullish. If you look back at the previous bear market, it is clear that these two lines were crossed in a very rapid fashion. This could be a sign that Bitcoin continues to be bullish in spite of the current macro pressure. This could also mean that the worst of things is yet to come and that a cross will still be coming.
It doesn’t help that monthly momentum on the LMACD hasn’t begun to weaken according to the histogram. However, the ADX shows a general trend that continues to fizzle out with bears in control for the first times since 2014-2015’s bear market bottom. The historical low of 20 has seen bullish strength drop below 20.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Bitcoin could be a perfect bottom TD Sequential Has One Week Left On 9
Thomas Demark designed the TD Sequential, a market timing indicator. Simply reaching a 9-count on a downtrend is enough for a buy setup –– which is a positive case for Bitcoin currently. However, these signals are more powerful when the 9-count is “perfected”. Bitcoin must set a lower bottom than the $17,600 current low to complete the series.
Although the bearish signal outweighs those of bullishness, price action has maintained above a trend line that has been in place for more than ten years. The bulls have some hope of staging an eventual reversal, but it is unlikely that this line will be crossed. They will likely need Powell and his money printing friends to help them tomorrow.
With just a week remaining to perfect the series, the TD9 is currently on a nine count.| Source: BTCUSD on TradingView.com
NewsBTC Trading Course: Learn how to perform crypto technical analysis. To access this educational program, click here
Elliott Wave International has Trader Education Week all week. Here is free access to five exclusive videos from one of the world’s best Elliott Wave analysts. The Elliott Wave book is also available for free if you sign up.
Follow @TonySpilotroBTC on Twitter or join Telegram from TonyTradesBTCGet daily market insight and expert technical analysis education. Please note: Content is educational and should not be considered investment advice.
Featured Image from iStockPhoto. Charts by TradingView.com