Bitcoin Brutalized
In this episode of NewsBTC’s daily technical analysis videos, we look at Bitcoin’s price action after today’s sell-off in response to August’s CPI numbers.
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Watch the video below:
BTCUSD Buy Signals With Risk After CPI Sell
The sale was really immediate. When looking at the one minute candleBitcoin lost more than 6% in value within a minute or two. Sales orders that are executed within seconds after the CPI numbers are released.
The sell-off is notable because it puts many of the buy signals from the weekly opening into the market video from yesterday at risk. These signals appeared at the opening of the weekly session, meaning that a close was always required this week to confirm the signals.
Quite the dump the second CPI numbers were released | Source: BTCUSD on TradingView.com
Bitcoin Bottom Fractal Features Similar Pre-Breakout Sale
The 2018 Bitcoin bear market bottom had a sell-off very similar to today’s price action and the resulting candlestick.
Using nothing more than an arrow placed at both key moments, zooming out on the weekly sale took place as well as these important buy signals were activated on weekly time frames.
The weekly buy signals are now at risk | Source: BTCUSD on TradingView.com
Related reading: WATCH: Bitcoin Bottoms as Easy as Pi? | BTCUSD September 9, 2022
Could the Top Crypto Close the Year Back at $40K?
The timing of today’s pullback is eerily similar to the bottom of the 2018 bear market, according to a fractal placed below the current price action. In this case, Bitcoin never hit new lows, but instead just moved sideways for several more weeks to draw more short-term interest.
The cryptocurrency subsequently rose by more than 300% in three months. If the fractal is followed, Bitcoin’s price could end the year at around $40,000 per coin.
Will BTC close above $40K to end the year? | Source: BTCUSD on TradingView.com
More downside instead? What the bearish scenario looks like
Of course, we would be foolish to rule out more downsides given the bearish macro backdrop. If we take a fractal from the last correction, we can have a roadmap for the last leg down.
The fractal has a Bitcoin price that ends the pattern just a few hundred dollars from the 2019 peak and could be a extended flat pattern.
What another leg down could look like | Source: BTCUSD on TradingView.com
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Featured image from iStockPhoto, Charts from TradingView.com
