A bullish week in Bitcoin on the way? BTCUSD Analysis October 17, 2022
In this episode of NewsBTC’s daily technical analysis videos, we look at the best chance Bitcoin and the rest of crypto have had for a bullish week in a long time.
Check out the video below:
VIDEO: Bitcoin (BTCUSD) Price Analysis: October 17, 2022
There continues to be little 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 is gearing up for big moves, but which direction?
Despite the lack of price action, daily timeframes are showing some signs of an impending breakout, possibly to the upside. Bollinger Bands are once again tight as can be, which is a signal that a big move is on the way. Bitcoin price is trying to push above the mid-BB, which will increase the likelihood of upside if the bands start to lift.
The daily LMACD is also just below the zero line. If you push above it, Bitcoin becomes completely bullish on the daily time frame.
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 consecutive week, opening with green momentum strengthening on the LMACD histogram. If bulls can close for a third week in a row, a new uptrend should materialize. Notice how during the last, failed attempt to break out, BTCUSD had weakened momentum and closed no more than three bullish ticks.
Bitcoin price is also working on a breakout of weekly downtrend resistance. This is not the final downtrend resistance on the log scale, but there is still significance here. The Relative Strength Index on weekly timeframes could signal an early breakout of several downtrend lines, which could soon lead to crypto taking a hit.
Why a reversing dollar means upside for crypto
A potential reversal may be underway on the DXY Dollar Currency Index. The strength of the dollar has been what has buoyed the stock market and crypto in recent months. With the dollar losing a RSI support line and confirming it as resistance just as a potential holiday frame for the evening star reversal on the DXY 2-week, Bitcoin also has a chance to reverse.
By putting BTCUSD behind DXY, we can immediately see why a reversal in DXY could be beneficial for Bitcoin. As DXY potentially tops out, 2-week Bitcoin line chart breaks out of a falling wedge pattern. With less than 7 days left in the 2-week timeframe for both BTC and DXY, next week could prove bullish for cryptocurrencies and other risk assets as the dollar finally corrects.
