Will Crypto Sink or Soar?
In this episode of NewsBTC’s brand new daily technical analysis videos, we look once again at the Bitcoin price monthly chart as well as the monthly chart of Ethereum, and major stock market indices that have a high correlation with crypto.
Take a look at the video below.
VIDEO: Bitcoin (BTCUSD) Price Analysis: August 31, 2022
There isn’t much to report since yesterday’s video, so all eyes remain on the central monthly trend in Bitcoin and other risk assets. As you learned in yesterday’s video, monthly BTCUSD is on a TD9 buy setup and could risk a lower low that could perfect the series. In the next video, we take a final look at monthly timeframes before tonight’s conclusion.
A Final Look at the Bitcoin Monthly Support Line (and Other Cryptocurrencies)
Tonight’s August month-end is critical for all risk assets – cryptocurrencies and stocks included. After staging an attempted recovery, Bitcoin, Ethereum and major stock indices have been rejected back to support. Holding this support level is the first step in a recovery, while losing it is a clearer sign of further downside.
In the chart below, we can see that all that separates BTCUSD from catastrophic new lows is one horizontal line – former all-time high resistance turned support. If the level does not hold firm as support, the crypto could see and extend the bear market.
The S&P 500 and Nasdaq losing their support levels has even more dangerous implications, possibly fueling a US recession.
Bitcoin hangs on by a thread at a key resistance turned support level | Source: BTCUSD on TradingView.com
Cyclical tools offer hope for a bottom
It cannot be denied that things are looking negative for Bitcoin and other risk assets at this time, cyclical behavior dating back to the first major bear decline in BTCUSD may give hope that the worst is over and a new bullish phase can begin.
In the video we compare previous cycles using the LMACD, Relative Strength Index, Stochastic and Average Directional Index. The fact that these tools can indicate that a bottom is in may provide a clue as to how the monthly candle will close tonight. With less than hours left in the monthly candle, it will be a nail biter.
We also take a closer look at this cyclical behavior in Bitcoin | Source: BTCUSD on TradingView.com
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Featured image from iStockPhoto, Charts from TradingView.com
