Bitcoin is barely holding on to $20,000 support
In this episode of NewsBTC’s daily technical analysis videos, we provide a weekly recap of Bitcoin price action and look ahead to what could be a critical weekend for the crypto.
VIDEO: Bitcoin (BTCUSD) Price Analysis: September 16, 2022
Overall, there isn’t much else to report this week. Bitcoin is still struggling to maintain support and continues to creep lower and lower. However, we may get some kind of bigger movement soon. The LMACD is close to crossing bearish every day. Sometimes, even if the crossover looks almost guaranteed, the two lines can diverge upwards and prices start to rise.
Bears Uncross Bullish Weekly Signals, Bulls Have Weekend To Counter
In fact, the bullish crossover reported earlier this week on the weekly open has now not been crossed by bears. Relative strength index buy signal is also missing from weekly BTCUSD price charts. Bitcoin is also barely hanging on to horizontal weekly support. Losing it puts $14K in play.
There is also a potential diagonal trend line that could show resistance turning support as it pulls from the 2019 high. The double top could then be a sign that a double bottom will finally hold here. Or not.
Bears uncross bullish signals from Monday's video | Source: BTCUSD on TradingView.com
Is Third Time the Charm for Bitcoin Bottom?
On the two-week time frame, both the LMACD and the Relative Strength Index are at a level where BTC bottomed during previous bear markets. Although a third time is not guaranteed, it can also be the charm.
Could the third time be the charm? | Source: BTCUSD on TradingView.com
Related Reading: WATCH: Bitcoin Bear Market Corrective Patterns Examined | BTCUSD September 14, 2022
Why final capitulation in crypto may still lie ahead
The monthly LMACD histogram may show that there is more room for momentum to move down. The Relative Strength Index on monthly timeframes is now the lowest in Bitcoin history. Finally, the Ichimoku on the monthly shows what could have been a bullish signal, which now looks much more ominous instead.
Tenkan-sen and Kijun-sen have crossed bullish but are about to cross bearish after all this time. Final capitulation in BTCUSD always happened after this signal was fired.
If the monthly doesn’t close significantly higher, the danger becomes much more imminent. It may also be too late at this point for bulls to avoid a crossover, even if Bitcoin skyrockets from here. How that might affect pricing remains to be seen.
The latest declines in Bitcoin should come soon enough, or are already behind us, so stay sharp.
Is capitulation coming? | Source: BTCUSD on TradingView.com
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Featured image from iStockPhoto, Charts from TradingView.com
