Bitcoin (BTC) Latest – Breaking Higher, a Sentiment Change?
Bitcoin (BTC) charts and analysis:
- The long-term downtrend has been broken and two simple moving averages look supportive.
- ETH/BTC jumps higher and gives the altcoin market a positive backdrop.
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Bitcoin has broken higher in the last 24 hours and is testing a previous resistance level around $20,475k that has weighed on BTC over the 10 weeks. The recent break, and confirmation of the medium-term downtrend, has helped fuel the move after BTCUSD was stuck in a multi-month sideways range. I noted the breach and reason for optimism earlier this month:
Bitcoin (BTC) Latest: A false break or a reason to be optimistic
While the recent move higher may have more room to run higher, it needs to break through a recent zone between $22.8k and $25.2k. A confirmed break through this zone would also take out the last two lower highs and the last of the three simple moving averages, the 200-dsma. This will change Bitcoin’s outlook to positive and put further upside on the cards.
Bitcoin (BTC/USD) Daily Price Chart – October 26, 2022
Chart via TradingView
While the technical outlook may be starting to turn around, the fundamental outlook could still weigh on Bitcoin. US interest rates will be raised by 75 basis points at the next FOMC meeting, and almost certainly by the same amount again at the December meeting, keeping the macro environment negative. Saying that yesterday Nasdaq and Bitcoin looked divergent, giving the crypto bulls more reason to be cheerful. Higher interest rates weigh on Nasdaq.
The second largest coin by market capitalization, Ethereum (ETH), is also moving higher and outperforming Bitcoin in the past week. The ETH/BTC spread is seen by some as a marker of altcoin performance with a rally spread leading to higher altcoin prices and a potential to outperform Bitcoin. The ETH/BTC spread is now back above all three simple moving averages, and a potential “golden cross” is forming. This setup, when the 50-day sma moves above the 200-day sma, is seen by many as a bullish signal.
ETH/BTC Daily Chart – October 26, 2022
Chart via TradingView
What is your view on Bitcoin – bullish or bearish?? You can let us know via the form at the end of this piece, or you can contact the author via Twitter @nickcawley1.
