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In this episode of NewsBTC’s daily technical analysis videos, we run the Bitcoin price chart upside down to get a unique perspective on the market.
Watch the video below:
VIDEO: Bitcoin Price Analysis (BTCUSD): October 27, 2022
Inverted Bitcoin price chart could suggest the bear market is over
When price action seems confusing, inverting an asset’s chart can help dispel bias and provide a clearer picture. Looking at BTCUSD from this perspective, it certainly looks like a retest of horizontal support turned resistance. There is also an ongoing breakdown of an upward trendline. But remember, everything is upside down.
On higher timeframes, the diagonal downtrend resistance remains intact. We can also clearly see very similar price action in the last major “top”, which is actually the bottom of the 2018 bear market. Turning things right side up again, does Bitcoin really look that bearish?
Bitcoin bulls can turn that frown upside down | Source: BTCUSD on TradingView.com
Related reading: Are Bitcoin Bulls Ready to Storm? | BTCUSD Analysis October 25, 2022
BTCUSD Weekly RSI Buy Signal Days Away From Confirmation
Moving on, we also have a potential buy signal on the weekly Relative Strength Index. This one is particularly important because the creator of the tool intended it that way. The buy signal occurs when a higher high is made on the RSI, after reaching oversold conditions and holding above the oversold area on a subsequent bounce.
It does help that BTCUSD is also working to break the downside RSI resistance on a weekly basis, also at the same time. Looking back at past Bitcoin bottoms, we can see that it was this exact buy signal that placed each bottom in weekly time frames. We can also see that there is a cyclical rhythm when each downtrend has come to an end.
The end of the dollar rally could end Crypto Winter
If that was an RSI buy signal on the BTCUSD weekly, what we are going to see is a sell signal on the RSI through the DXY weekly. The sell signal on the Dollar currency index begins to break off from a diagonal RSI support line and break off from the continuous parabola.
If we put the DXY and Bitcoin chart side by side, we can see that there are directly opposing signals on each chart. Watch the full video for the full breakdown and more comparisons.