WATCH: Bitcoin Versus DXY And The Dangerous TD9 Setup | Daily TA August 30, 2022
August 30 2022 - 11:46AM
NEWSBTC
In this episode of NewsBTC’s all-new daily technical analysis
videos, we are looking at the Bitcoin price monthly chart and the
DXY Dollar Currency Index ahead of the monthly close. Take a look
at the video below. VIDEO: Bitcoin Price Analysis
(BTCUSD): August 30, 2022 We are coming down to the wire here
in the month of August, with less than 48 hours remaining until the
monthly candle close. The month is especially critical for a number
of pivotal reasons of which we’ll review in the video and in the
text and charts below. Related Reading: WATCH: Can Litecoin Lead A
Crypto Recovery (Again?) | Daily TA August 29, 2022 The Terrifying
TD9 Buy Setup On Monthly Timeframes The first and most important
factor weighing over the next couple of days in the crypto market,
is a looming TD9 buy setup. The TD Sequential is a market timing
indicator. Simply reaching a 9-count is enough for a buy setup.
However, the signal is much stronger when the series is
perfected. This can only happen with a sweep of the current
low below around $17,500. It would also require a breakdown of
all-time high resistance turned support and a breakdown of a
decade-long monthly trend line. A
perfected TD9 setup would result in losing this trend line |
Source: BTCUSD on TradingView.com Could A Hidden Bullish Divergence
Save The Day? Bitcoin price continues to rest on the lower
Bollinger Band – a first for the first ever cryptocurrency on the
high timeframe chart. What we don’t want to see is price action
close outside the lower band, which could lead to an explosive
down-move. Despite this risk, there are several signs that a bottom
could also be in. The monthly momentum on the LMACD histogram and
Relative Strength Index could be signaling a hidden bullish
divergence. Stochastic is also nearing a turning point after
reaching oversold conditions – another recurring bottom setup,
especially when combined with a breakout of a downtrend resistance
line. Is this enough for a bottom? | Source: LTCBTC on
TradingView.com Or Will The DXY Defeat BTC Bulls Yet Again?
Remember, one half of the BTCUSD trading pair is the dollar. This
means that when the dollar is strong, the BTC side of the trading
pair takes a beating. The best way to gauge the strength of the
dollar is through the DXY – the dollar currency index –
which is a weighted basket of top world currencies trading against
the dollar. Much like Bitcoin price action is reaching oversold
conditions with a possible hidden bullish divergence, the DXY is
overbought and potentially forming a bearish divergence on each of
the same indicators: RSI, LMACD, and Stoch. Are dollar bears
waiting for a chance to strike? | Source: LTCETH on TradingView.com
Comparing Currencies: Bitcoin Versus The Dollar The similarities to
the 2014 and 2015 bear market versus the most recent bear market in
2018, appear to be due to the dollar strength. The last time the
DXY was this overbought was during what’s known as crypto’s worst
bear market ever. Plotting BTCUSD behind the DXY we can take a
closer look at the possible correlation – or anti-correlation. The
last extended up-move in the DXY is what led to such a lengthy bear
phase in crypto. Interestingly, the Bitcoin plot at some points
appears to be acting as dynamic support and resistance for the DXY,
perhaps showing off an anti-correlated relationship through the
trading pair. Bitcoin has bottomed each time the DXY pushed above
the BTCUSD plot line. Bear markets arrive during DXY upmoves, and
Bitcoin performs well when DXY moves sideways, and the best when
DXY is falling. With the DXY potentially at oversold conditions on
the monthly timeframe, a pullback could be near or even a complete
trend change that ultimately lifts Bitcoin out of its bear market.
Bitcoin has worked as dynamic support and resistance for the DXY
chart | 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 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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