Will Bitcoin Make A Weekend Comeback? BTCUSD September 2, 2022

Crypto News
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In this episode of NewsBTC’s daily technical analysis videos, we are going to look at the weekly time frame on Bitcoin BTCUSD in anticipation of the weekend and the weekly close.

Watch the video below:

VIDEO: Bitcoin Price Analysis (BTCUSD): September 2, 2022

With the monthly open now out of the way and Friday here, we look ahead to the weekend close for what could be an interesting weekend in the crypto market.

Bitcoin price has tracked a fractal from the bottom of the bear market. Interestingly, the Relative Strength Index has a similar setup as it did back then. Meanwhile, momentum is behaving very differently, according to the LMACD.

In order for a buy signal to occur on the Relative Strength Index, the RSI should make a higher high and break the line drawn in black. The RSI moving average has also held up after a retest, just like the last crypto winter.

We are also waiting for a bullish crossover on the weekly LMACD. Momentum has fallen to the same level as the bottom of the last bear market but continues to track sideways. The price and both indicators may be approaching a break in the downward trend resistance, which could trigger a bullish move.

BTCUSD_2022-09-02_13-16-31

Could the same trend line give us another bottom? | Source: BTCUSD on TradingView.com

Bull’s hidden hope for a turnaround

If a bottom forms here, there is potential in a major trendline holding. The trendline doesn’t seem very important until you zoom out on monthly time frames. On a monthly basis, it is currently supporting the entire trend since 2018 on a dead straight basis.

The trendline would give us a potentially hidden bullish divergence on both the RSI and LMACD. Given the number of bearish signals from video from yesterdaythis is the bull’s best hope for a turnaround.

BTCUSD_2022-09-02_13-17-42

Will this hidden bull div hold firm? | Source: BTCUSD on TradingView.com

Related reading: WATCH: Monthly Waiting for Bitcoin: Will Crypto Sink or Rise? BTCUSD 31 August 2022

Has Powell’s Downtrend Been Broken?

To give us an idea of ​​how the next three days might perform, including today and our weekend, the chart below shows the three days. Just a moment before education, this is exactly how you would interpret different time frames. If you want to know how an asset can perform over months, pay closer attention to the monthly chart.

The 3-day looks poised to diverge upwards according to the LMACD. The RSI downtrend resistance continues to narrow, leaving little room for the indicator, either down, or right through it. A subjectively drawn downtrend channel could suggest that we have broken out of the downtrend, retested it and are ready to move up.

BTCUSD_2022-09-02_13-14-27

The 3-day LMACD appears ready to push higher | Source: BTCUSD on TradingView.com

Cyclical Tools to Consider in Crypto Winter

In times like these, we can turn to cyclical instruments to see if there’s a rhythm or rhyme to where the market had bottomed in the past. With regard to price, RSI and LMACD, the visible cyclical behavior is undeniable.

Bitcoin is facing the riskiest environment to date. However, we could be looking at one of the most favorable setups in terms of its reward in a very long time.

BTCUSD_2022-09-02_13-13-36

We also take a closer look at this cyclical behavior in Bitcoin | Source: BTCUSD on TradingView.com

Learn crypto technical analysis yourself with the NewsBTC Trading Course. click here to access the free educational program.

Follow @TonySpilotroBTC on Twitter or join us the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please Note: Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com

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