In this episode of NewsBTC’s daily technical analysis videos, we take a look at the best opportunity Bitcoin and the rest of crypto has had a bullish week for a long time.
Watch the video below:
VIDEO: Bitcoin Price Analysis (BTCUSD): October 17, 2022
There is still not much movement in crypto, with Bitcoin currently trading around $19,500. But the lack of movement is welcome after nearly a year of falling prices.
Bitcoin is gearing up for big step, but which direction?
Despite the lack of price action, the daily timeframes are showing some signs of an impending breakout, possibly upward. The Bollinger Bands are as tight as can be again, signaling that a big move is on the way. Bitcoin price is trying to break above the middle BB, which would increase the likelihood of upward momentum if the bands begin to rise.
The daily LMACD is also just below the zero line. Pushing on top of it will turn Bitcoin completely bullish on the daily time frame.
The Bollinger Bands suggest a big move is coming | Source: BTCUSD on TradingView.com
BTCUSD Downward Trendline Broken as Weekly Momentum Strengthens
Weekly momentum also closed bullish for the second week in a row, with green momentum strengthening on the LMACD histogram. If the bulls can close for a third week in a row, another uptrend should emerge. Note how during the last failed attempt to break out, BTCUSD had weakening momentum and only got past three bullish ticks.
Bitcoin price is also working on a break of weekly downward trend resistance. This is not the last log scale downtrend resistance, but there is still significance here. The Relative Strength Index on weekly time frames could signal an early breakout of multiple downward trendlines, which could soon lead to crypto making a move.
Why a Reversing Dollar Positively Affects Cryptography
There could be a possible reversal on the DXY Dollar Currency Index. The strength of the dollar has been beating the stock market and crypto in recent months. With a loss of the dollar Relative Strength Index Just as a possible high time frame evening star reversal is forming on the DXY 2 week, Bitcoin has a chance to reverse as well.
After layering in BTCUSD behind the DXY, we can immediately see why a reversal in the DXY could be beneficial for Bitcoin. While the DXY may be reaching its top, the Bitcoin 2-week line chart is breaking out of a bearish wedge pattern. With less than 7 days left on the 2 week timeframe for both BTC and the DXY, the next week could be bullish for cryptocurrencies and other risky assets as the dollar finally corrects.
