In this episode of NewsBTC’s Daily Technical Analysis VideosWe are looking for a Bitcoin price rebound today after a sharp sell-off following the release of the September CPI numbers.
See the video below:
Video: Bitcoin Price Analysis (BTCUSD): October 13, 2022
At 8:30 a.m. ET this morning, updated Consumer Price Index The numbers were released to the public, leading to a sharp sell-off to date in Bitcoin and the stock market. Within a couple of hours after that, all the losses during the day were made up in a brisk movement.
Consumer prices rose 0.4% in September and rose 8.2% year over year. The fact that inflation is not abating may prompt the Fed to raise rates further in November than in December. The recent interest rate increases are showing very little effect in curbing inflation.
Bitcoin price rebounded from lower Bollinger bands
Bitcoin price moved down today Bollinger Bands, but was soon bought after traveling abroad. If BTCUSD was ready to crash, it would be a good time to touch the dip. Instead, the price action pulled back and started heading towards the BB average.
With the Bollinger Bands pressured, volatility should be released soon enough and after today’s defense, the potential for a rally has increased exponentially. Close of the day making it above the average Bollinger Bands will improve the chances of an uptrend.
The Bollinger Bands appear ready to release volatility | Source: BTCUSD on TradingView.com
Bitcoin Futures Survives Bear Cross, Bulls Take Charge
On the daily timeframes, the LMACD The downtrend on the spot BTCUSD and other spot exchanges has crossed. Meanwhile, CME BTC price charts are still bullish and showing signs of divergence.
Differences in LMACD between spot index and CME bitcoin futures contracts have been notable in the past. During the second peak of 2021 at $68K, spot bitcoin exchanges parried the bullish trend, while CME traders narrowly avoided the bullish crossover. The discrepancy occurred at the exact top of the rookie race.
On the way down, prior to the LUNA crash, there was another discrepancy between spot exchanges and CME futures using LMACD. The price flipped bullish again, while the CME remained bearish the entire time.
TD9 buy signal is improved as dips sweep
One thing is for sure: both the spot and CME’s weekly LMACD are exactly the same. However, the price action is not. CME closed when we had a fuse of $17,500. This means that today’s low has engulfed all previous lows.
Given the drop in prices in CME Bitcoin futures, it was a sufficient move to start a perfect TD9 buy setup on the weekly time frames. The perfect TD9 buy setup occurred on the previous failed TD9 sell signal, and a set of supports coinciding with the previous all-time bitcoin high. If Bitcoin can make a recovery here, the level may continue permanently.