Bitcoin Holds on $20000
In this episode of News BTC’s Bitcoin Holds on $20000 daily technical analysis videos we provide a weekly recap of Bitcoin price action and look ahead to what could be a critical weekend for crypto.
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VIDEO: Bitcoin Price Analysis (BTCUSD): September 16, 2022
In general, there is not much more to report this week. Bitcoin is still struggling to maintain support and continues to creep lower and lower. However, we could soon get some sort of bigger movement. The LMACD is close to bearish on the daily. Sometimes, although the crossover looks almost guaranteed, the two lines can diverge upwards and prices start to rise.
Bears dodge bullish weekly signals, bulls have the weekend to counter
In fact, the bullish crossover reported at the weekly open earlier this week is now no longer crossed by bears. The Relative Strength Index buy signal has also disappeared from the weekly BTCUSD price charts. Bitcoin is also barely holding onto horizontal weekly support. If you lose it, $14K will come into play.
There is also a potential diagonal trendline that could show a reversal of resistance that has turned support from the 2019 peak. The double top could therefore be a sign that ultimately a double bottom applies here. Or not.
Bears uncross bullish signals from Monday's video | Source: BTCUSD on TradingView.com
Is the third time the charm for the Bitcoin bottom?
On the two-week timeframe, both the LMACD and the Relative Strength Index are at levels where BTC has bottomed out during previous bear markets. While a third time is not guaranteed, it can also be the charm.
Could the third time be the charm? | Source: BTCUSD on TradingView.com
Related reading: WATCH: Bitcoin Bear Market Corrective Patterns Examined | BTCUSD September 14, 2022
Why final capitulation in crypto is still imminent
The monthly LMACD histogram could show there is more room for momentum to move down. The Relative Strength Index on monthly time frames is now the lowest in Bitcoin history. Finally, the Ichimoku on the month shows what could have been a bullish signal, which is now looking much more ominous.
The Tenkan-sen and Kijun-sen have crossed bullish but are about to cross bearish after all this time. Final capitulation in BTCUSD always took place after this signal went off.
If the month doesn’t close significantly higher, the danger becomes much greater. It may also be too late for bulls to avoid a crossover at this point, even if Bitcoin skyrockets from here. How that might affect price action remains to be seen.
The latest lows in Bitcoin should be soon enough, or already behind us, so stay sharp.
Bitcoin Holds on $20000 | Source: BTCUSD on TradingView.com
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Featured image from iStockPhoto, Charts from TradingView.com