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In this episode of NewsBTC’s daily technical analysis videoswe look at Bitcoin price surge today following a steep sell-off following the release of September CPI numbers.
Watch the video below:
VIDEO: Bitcoin Price Analysis (BTCUSD): October 13, 2022
Updated at 8:30 a.m. ET this morning consumer price index figures were released to the public, leading to a sharp sell-off in Bitcoin and the stock market. Within a few hours, all intraday losses were made up in no time.
Consumer prices rose 0.4% in September and grew 8.2% year-on-year. The fact that inflation is not slowing down could prompt the Fed to raise interest rates further into December in November. Recent interest rate hikes have had little effect on reducing inflation.
Bitcoin Price Bounces Back From Lower Bollinger Band
Today’s move in Bitcoin price tapped the lowest Bollinger Band, but was bought up quickly after traveling outside of it. If BTCUSD had been ready to break down, it would have been the right time to touch the lower. Instead, the price action hit back and stroked the middle BB.
With the Bollinger Bands squeezing, volatility should be released soon enough and after today’s defense, the chances of a rise increased significantly. Today’s daily close taking it above the middle Bollinger Band would further increase the chances of upside.
The Bollinger Bands appear ready to release volatility | Source: BTCUSD on TradingView.com
BTC Futures Escape Bear Cross, Bulls Take the Lead
On daily timetables, the LMACD has crossed bearish on the BTCUSD spot index and other spot exchanges. Meanwhile, the CME BTC price charts are still bullish and showing signs of diverging.
Discrepancies in the LMACD between the spot index and CME Bitcoin futures in the past have been notable. During the second peak of 2021 at $68K, spot Bitcoin exchanges had passed bullish, while CME traders narrowly avoided the bull-cross. The discrepancy happened right on top of the bull run.
On the way down, prior to the collapse of LUNA, there was another mismatch between spot exchange and CME futures using the LMACD. Spot turned bullish again, while CME remained bearish the entire time.
TD9 Buy signal is perfected with series of lows
One thing is certain: the weekly LMACD on both spot and CME are exactly the same. Price action is not, however. CME was closed when we had a pit of $17,500. This means that today’s low has swept all previous lows.
As there were lows on CME Bitcoin futures, it was enough movement to trigger a perfected TD9 buy setup on weekly timeframes. The perfected TD9 buy setup took place on a former failed TD9 sell signal and a cluster of support coinciding with Bitcoin’s former all-time high. If Bitcoin can make a recovery here, it could hold the level permanently.