In this episode of NewsBTC’s Daily Technical Analysis VideosAnd the We take a closer look at a variety of bullish signals in Bitcoin that were launched with the latest weekly opening. However, the cryptocurrency market is not out of danger as this week should confirm the signals with a strong close.
See the video below:
Video: Bitcoin (BTCUSD) Price Analysis: September 12, 2022
Last night we had a weekly closing in Bitcoin It has already added nearly 3% above about 16% of the lows swept by last week’s candle. As a result of this movement, several bullish signals were released on the open candle. However, it is necessary for BTCUSD to remain above the current levels to confirm the signals with a full weekly candlestick closing.
Checking BTCUSD Weekly Buy Signals
The weekly opened with a bullish crossover of LMACD. Even a weekly candle close and a confirmed crossover can be a trap, as we have seen on the way down on the BTCUSD weekly charts. However, it is where the crossover occurs from that significantly.
LMACD bullish crosses during previous bear markets at such a level have led to a long-term bottom and a sustainable upward trajectory. Momentum in both the 2018 and 2014 bear markets has fallen to the same level.
Weekly BTCUSD also acts as a buy signal on RSIAccording to the creator of the tool, J. Wells Wilder Jr.. The buy signal is activated when the RSI drops below oversold conditions, and then rises from below the threshold.
If the RSI on the next pullback does not revisit oversold conditions, we have one important factor in generating a buy signal. The RSI should then make a higher top. A comparison with the 2018 bear market bottom shows this subtle behavior and its impact.
Comparing past Bitcoin bear market buy signals | Source: BTCUSD on TradingView.com
Reversal targets shifted to retest $32,000 to support resistance
If a bottom exists in Bitcoin at all, the next logical target will first close above the middle-Bollinger Bandsthen pushed to the other side of the ranges at roughly $32,000.
On the IchimokuThe Kijun-sen is at the same level as the upper Bollinger Band, highlighting a clear level of importance on the weekly time frames. Just like the last bear market, Bitcoin just took Tenkan-sen, and the development of the cloud occurred after the bottom was already in place.
Indicator dynamic resistance could give a target of $32K | Source: BTCUSD on TradingView.com
Could it be a 3-month, 300% spike in Bitcoin cards?
Since the case from the 2018 bear market bottom looks very similar right now, let’s use a bar pattern to project a 2019 high from where we are currently.
The result is a return to all-time highs. If you remember, the 2019 rally only took three months for BTC earn 300%. It didn’t hit a new high until about 18 months later.
The 2019 rally resulted in over 300% growth | Source: BTCUSD on TradingView.com
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Featured image from iStockPhoto, Charts from TradingView.com