In this episode of NewsBTC’s daily technical analysis videos, we’re looking at the best chance Bitcoin and the rest of cryptocurrencies have had for a bull week in a long time.
Take a look at the video below:
VIDEO: Bitcoin (BTCUSD) Price Analysis: Oct 17, 2022
There continues to be little movement in crypto, with Bitcoin trading around $19,500 currently. But the lack of movement is welcome after almost a year of falling prices.
Bitcoin prepares for a big move, but in which direction?
Despite the lack of price action, the daily timeframes are showing some signs of an impending breakout, possibly to the upside. The Bollinger Bands are once again tight, which is a sign that a big move is coming. Bitcoin price is trying to rise above the mid BB which would increase the probability of it going higher if the bands start to rise.
The daily LMCD is also just below the zero line. Pushing above makes Bitcoin fully bullish on the daily time frame.
Bollinger Bands suggest a big move is coming | Source: BTCUSD on TradingView.com
BTCUSD Downtrend Line Breaks As Weekly Momentum Strengthens
Weekly momentum has also closed higher for the second week in a row, opening with green momentum strengthening on the LMCD histogram. If the bulls can close for the third week in a row, a new uptrend should materialize. Note how during the last failed breakout attempt, BTCUSD had weakened momentum and did not close beyond three ticks higher.
Bitcoin price is also working on a breakout of weekly downtrend resistance. This is not the final downtrend resistance on a logarithmic scale, but it still matters here. The Relative Strength Index on weekly time frames could be signaling an early breakout of multiple downtrend lines, which could soon lead to cryptocurrencies making a move.
Why a dollar invested means an advantage for cryptocurrencies
A potential reversal could be in progress in the DXY dollar currency index. The strength of the dollar has been what has hit the stock market and cryptocurrencies in recent months. With the dollar shedding a Relative Strength Index support line and confirming it as resistance just as a possible evening star reversal from a 2-week DXY high time frame forms, Bitcoin also has a chance to reverse.
By placing BTCUSD behind DXY, we can immediately see why a reversal in DXY could be beneficial for Bitcoin. While DXY is potentially topping out, Bitcoin’s 2-week line chart is breaking out of a falling wedge pattern. With less than 7 days to go in the 2-week time frame for both BTC and DXY, the week ahead could turn out to be bullish for cryptocurrencies and other risk assets as the dollar finally corrects.
This post A bullish week in Bitcoin on the way? BTCUSD Analysis October 17, 2022
was published first on https://www.newsbtc.com/news/bitcoin/a-bullish-week-in-bitcoin-on-the-way-btcusd-analysis-october-17-2022/
