In this episode of NewsBTC’s daily technical analysis videos, we provide a weekly wrap up on Bitcoin price action and look ahead into what might be a critical weekend for crypto.
VIDEO: Bitcoin Price Analysis (BTCUSD): September 16, 2022
Overall, there isn’t all that much more to report this week. Bitcoin is still struggling to maintain support and continues to creep lower and lower. We could get some sort of larger movement soon, however. The LMACD is close to crossing bearish on the daily. Sometimes, although the crossover looks all but guaranteed, the two lines can diverge upward and prices begin to climb.
Bears Uncross Bullish Weekly Signals, Bulls Have The Weekend To Counter
In fact, the bullish crossover reported earlier this week at the weekly open, has now been uncrossed by bears. The Relative Strength Index buy signal is also gone from weekly BTCUSD price charts. Bitcoin is also barely hanging onto horizontal weekly support. Losing it puts $14K in play.
There is also a potential diagonal trend line that might be demonstrating a flip of resistance turned support when drawn from the 2019 peak. The double-top then, could be a sign that a double bottom ultimately holds here. Or not.
Bears uncross bullish signals from Monday's video | Source: BTCUSD on TradingView.com
Is The Third Time The Charm For The Bitcoin Bottom?
On the two-week timeframe, both the LMACD and Relative Strength Index are at a level where BTC bottomed during past bear markets. While a third time isn’t guaranteed, it could also be the charm.
Could the third time be the charm? | Source: BTCUSD on TradingView.com
Related Reading: WATCH: Bitcoin Bear Market Corrective Patterns Examined | BTCUSD September 14, 2022
Why Final Capitulation In Crypto Could Still Be Ahead
The monthly LMACD histogram could show that there is more room for momentum to move down. The Relative Strength Index on monthly timeframes is now the lowest in Bitcoin history. Finally, the Ichimoku on the monthly shows what might have been a bullish signal, that is now looking much more ominous instead.
The Tenkan-sen and Kijun-sen are crossed bullish, but are about to cross bearish after all this time. Final capitulation in BTCUSD always occurred after this signal fired.
If the monthly doesn’t close significantly higher, danger becomes much more imminent. It also may be too late at this point for bulls to avoid a crossover, even if Bitcoin skyrockets from here. How that may impact price action remains to be seen.
The final lows in Bitcoin should be due soon enough, or are already behind us, so stay sharp.
Is capitulation coming? | Source: BTCUSD on TradingView.com
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Featured image from iStockPhoto, Charts from TradingView.com
Source: https://www.newsbtc.com/news/bitcoin/bitcoin-20000-btcusd-september-16-2022/