In this episode of NewsBTC’s daily technical analysis videos, we are looking at the best chance Bitcoin and the rest of crypto has had for a bullish week in a long time.
Take a look at the video below:
VIDEO: Bitcoin Price Analysis (BTCUSD): October 17, 2022
There continues to be not much movement in crypto, with Bitcoin trading at around $19,500 currently. But the lack of movement is welcome after nearly a year of falling prices.
Bitcoin Gears Up For Big Move, But Which Direction?
Despite the lack of price action, daily timeframes are showing some signs of an impending breakout, possibly to the upside. The Bollinger Bands are once again tight as can be, which is a signal a big move is on the way. Bitcoin price is trying to push above the middle-BB which would increase the probability of upside if the bands begin to lift.
The daily LMACD is also just below the zero line. Pushing above it turns Bitcoin fully bullish on the daily timeframe.
The Bollinger Bands suggest a big move is coming | Source: BTCUSD on TradingView.com
BTCUSD Downtrend Line Broken As Weekly Momentum Strengthens
Weekly momentum has also closed bullish for the second week in a row, opening with green momentum strengthening on the LMACD histogram. If bulls can close a third week in a row, a new uptrend should materialize. Note how during the last, failed attempt to break out, BTCUSD had weakening momentum and didn’t close beyond three bullish ticks.
Bitcoin price is also working on a breakout of weekly downtrend resistance. This is not the final downtrend resistance on log scale, but there is still significance here. The Relative Strength Index on weekly timeframes could be signaling an early breakout of multiple downtrend lines, which could soon lead to crypto making a move.
Is BTCUSD ready for a big breakout? | Source: BTCUSD on TradingView.com
Related Reading: Total Crypto Market Cap Meltdown | TOTAL Analysis October 12, 2022
Why A Reversing Dollar Means Upside For Crypto
A potential reversal could be in progress on the DXY Dollar Currency Index. The strength of the dollar has been what has beat up the stock market and crypto over the last several months. With the dollar losing a Relative Strength Index support line and confirming it as resistance just as a potential high timeframe evening star reversal forms on the DXY 2-week, Bitcoin has a chance at reversing as well.
Upon layering in BTCUSD behind the DXY, we can see immediately why a reversal in the DXY could be beneficial for Bitcoin. All while the DXY is potentially topping out, the 2-week Bitcoin line chart is breaking out from a falling wedge pattern. With less than 7 days left to go on the 2-week timeframe for both BTC and the DXY, the next week could prove to be bullish for cryptocurrencies and other risk assets as the dollar finally corrects.
The dollar breaking down could benefit crypto | Source: BTCUSD on TradingView.com
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Featured image from iStockPhoto, Charts from TradingView.com