Will Bitcoin make a comeback this weekend? BTCUSD September 2, 2022
In this episode of NewsBTC’s daily technical analysis videos, we will look at the weekly timeframe on Bitcoin BTCUSD in anticipation of the weekend and weekly close.
Check out the video below:
VIDEO: Bitcoin (BTCUSD) Price Analysis: September 2, 2022
With the monthly open now out of the way and Friday here, we look ahead to the weekend close ahead of what could be an interesting weekend in the crypto market.
Bitcoin price has followed a fractal from the bottom of the bear market. Interestingly, the Relative Strength Index has a similar setup to back then. Meanwhile, momentum behaves much differently according to the LMACD.
For a buy signal to occur on the Relative Strength Index, the RSI must make a higher high and break the line drawn in black. The RSI moving average has also held after a retest, much like last crypto winter.
We are also waiting for a bullish crossover on the weekly LMACD. Momentum has fallen to the same level as the recent bottom of the bear market, but continues to track sideways. Price and both indicators are potentially approaching a breakout of downtrend resistance that could provide a bullish move.
Could the same trend line give us another bottom? | Source: BTCUSD on TradingView.com
The Bulls harbored hopes of a reversal
If a bottom forms here, there is potential for an important trendline hold. The trend line doesn’t seem very important until you zoom out on monthly time frames. On a monthly basis, it is currently supporting the entire trend since 2018 on a candle close basis.
The trendline will give us a potential hidden bullish divergence on both the RSI and LMACD. Given the number of bearish signals from yesterday’s video, this is the bulls’ best hope for a reversal.
Will this hidden bull div hold firm? | Source: BTCUSD on TradingView.com
Related Reading: WATCH: Waiting for Bitcoin Monthly: Will Crypto Sink or Soar? BTCUSD August 31, 2022
Has Powell’s downtrend been broken?
To give us a sense of how the next three days could perform, which includes today and our weekend, the chart below represents the 3-day. Take a moment for education, this is exactly how you will interpret different time frames. If you want to know how an asset may perform months from now, you should follow the monthly chart more closely.
The 3-day appears to diverge to the upside according to the LMACD. The RSI downtrend resistance continues to narrow, giving the indicator little room but down, or right through it. A subjectively drawn downtrend channel may indicate that we have broken out of the downtrend, retested it and are ready to move up.
The 3-day LMACD appears ready to push higher | Source: BTCUSD on TradingView.com
Cyclic tools to consider in crypto winter
In times like these, we can turn to cyclical tools to see if there is any rhythm or rhyme to where the market had previously bottomed. Across price, RSI and LMACD, the visible cyclical behavior cannot be denied.
Bitcoin is facing its riskiest environment yet. However, we can look at one of the most favorable setups in terms of the reward in a very long time.
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
