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In this episode of NewsBTC’s daily technical analysis videos, we examine the reason for today’s volatility and the rejection of the rally. We also look ahead to the factors that could give Bitcoin price a green October.
Watch the video below:
VIDEO: Bitcoin Price Analysis (BTCUSD): September 27, 2022
This morning, Bitcoin started a big move of more than 5% upwards, with the top cryptocurrency going back to over $20,000. Before bulls could even breathe a sigh of relief, bears knocked back the rally by over a thousand dollars to just under $19,000.
On weekly time frames, there is also such a potential bullish crossover on the LMACD. Bears have defended this signal repeatedly. Before today’s rejection, Bitcoin was back in the green and past the zero line.
Interestingly, the current weekly candle is also very similar to the corresponding candle that appeared at the bullish crossover at the Bear Market Bottom 2018. Again, there is a long upward fuse that coincides with the crossover. The crossover was eventually confirmed despite being defended by bears, and a bottom of the last major crypto winter was in.
Why Bitcoin Might Close October In Green
Finally, on monthly timeframes, although we are a long way from any type of bull cross, bears need to maintain momentum or risk bulls taking back control of crypto.
With only three days left in the monthly time frame and bullish crossovers on the daily, 3-day and weekly, the hunt for a green October has begun. Out of the last October 12, Bitcoin closed only four reds.
At the moment, no monthly candles have closed below the former all-time high restored in 2017, but this is what bears drool over. If bulls can avoid a shutdown below this level, they can put bears back into hibernation for at least another three months.
Even if the bulls move below the critical support level, the resulting candle will look just like the monthly candle where the tide finally turned and started another uptrend.