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In this episode of NewsBTC’s daily technical analysis videos, we examine how Bitcoin trades against other currency pairs and not against USD. We also look at BTC against WTI Crude Oil and the S&P 500.
Watch the video below:
VIDEO: Bitcoin Price Analysis (BTCUSD): September 28, 2022
The market continues to be shaken by the strength of the dollar. After yesterday’s rally in BTC it was: immediately wiped outtraders are even more hesitant to pull the trigger now that the top cryptocurrency is on the rise again.
Bitcoin Daily Momentum Change Causes Chain Reaction
Bitcoin daily is bullish on the LMCD, cause a chain reaction over different time frames. In terms of this chain reaction, we have a bullish crossover on the 3-day and the weekly timeframe. Both, especially the weekly ones, have been like ace, every time they try to turn the tide of momentum, bounce back to bulls.
Momentum causes a bullish chain reaction of crossovers | Source: BTCUSD on TradingView.com
How BTC performs against other world currencies
The DXY Dollar Currency Index is the dollar trading against a weighted basket of top national currencies. These currencies include the British pound sterling, the euro, the Canadian dollar, the Japanese yen, the Swedish krona and the Swiss franc.
Due to the huge turmoil and volatility in the global currency markets, we are placing Bitcoin against other currencies and not against the standard USD pair.
As you can see, the pound, euro, Canadian dollar and Japanese yen crossed bullish all weeks before as the USD pair struggles to do so. Other strong national currencies, such as the Swedish krona and the Swiss franc, have yet to cross the line just like the dollar.
Comparing the top crypto to the S&P 500 and WTI crude
Continuing the deep dive into unorthodox Bitcoin charts, we have combined the charts of BTCUSD and the SPX. This unique chart shows that Bitcoin never higher high at the end of 2021, and the downward trend started with the April peak. This chart is also bullish and has a weekly close confirming the crossover. Bullish momentum will need to grow to support a rally.
We then compared Bitcoin to what could be the most important macro asset globally: oil. In this comparison, just like the SPX example, we are pitting BTCUSD against WTI Crude Oil. WTI Crude Oil is West Texas Intermediate oil produced in America.
In this odd trading pair, Bitcoin also had a lower high and a much steeper downtrend. However, Bitcoin turned bullish against oil a few weeks ago but has yet to produce any meaningful upward movement. Will such a step come soon enough?