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In this episode of NewsBTC’s daily technical analysis videos, we re-examine a possible comprehensive flat correction in Bitcoin. Once the correction is complete, the bull market may resume.
Watch the video below:
VIDEO: Bitcoin Price Analysis (BTCUSD): October 18, 2022
In addition to the video highlights listed below the video, we also analyze BTCUSD using the Ichimoku, Bollinger Bands, SuperTrend, TD Sequential, and other technical tools.
Three Strikes: BTCUSD Rejected From 50 Day Moving Average
BTCUSD Daily Price Action Was Rejected Again by the 50 Day Moving Average. This is the third rejection since September, leaving the 50MA a critical line in the sand to pass before there is any chance of further gains.
If we zoom out and compare the 50MA and its behavior around the bottom of the 2018 bear market, we can see that breaking it is key to bulls regaining control of the daily timeframes. Given its proximity to the 100-day moving average in yellow, the next target would be the red 200-day moving average which is around $26K.
If Bitcoin can break the 50-MA and 100-MA, $26K is next | Source: BTCUSD on TradingView.com
Bitcoin CME Futures almost perfectly paints extended flat pattern
The BTC CME Futures line chart causes the price action of the past 18 months to fill an extended flat pattern almost perfectly. An expanded flat has a higher high at the top of the B wave, followed by a lower low as the C wave ends. The C-wave is a downward impulse wave that consists of 5 total sub-waves.
The BTC CME chart starts with a bear market. The primary count would suggest the extended planar correction formed in wave 4 and another wave 5 is on the way. In Elliott Wave Theoryone way to potentially project the peak where wave 5 will end is to find the inverse Fibonacci extension of wave C.
At the 1,272 extension, Bitcoin would hit $90,000, while tapping the 1,618 gold ratio extension would top it off at over $137,000 per BTC.
Will the Crypto winter end with a whiff of the log growth curve?
While given the macro sentiment, the risk of recession and the fact that every floor in crypto has fallen over and over, this is not an uncommon place for Bitcoin to bottom out.
Bitcoin price continues to grind past the logarithmic growth curve. All price action in the entire history of cryptocurrencies is contained within this narrowing curvature. Why would it suddenly stop now?
