In this episode of NewsBTC’s daily technical analysis videos, we examine the recent resilience in Bitcoin compared to traditional assets like gold, oil, and the S&P 500. We also compare BTC to the DXY Dollar Currency Index and past crypto bear market bottoms.
Take a look at the video below:
VIDEO: Bitcoin Price Analysis (BTCUSD): September 26, 2022
After last Friday’s market close and extreme bearish sentiment last week following the Fed meeting, most investors and traders braced for a very bloody Monday open. But Bitcoin continues to show resilience compared to other markets. In this video, we put BTC head-to-head with traditional markets and more.
Comparing Bitcoin With Gold, Oil, S&P 500, And DXY
Here we can see that Bitcoin peaked before other asset classes, and has held up better in recent days compared to gold, oil, and the S&P 500.
Considering how strong the dollar has been, Bitcoin standing up this strong here is significant. Through the DXY comparison, we can also see that BTC held up well against the USD side of its trading pair compared to other top world currencies like the pound, euro, and yen that make up the DXY index.
BTC compared to other asset classes | Source: BTCUSD on TradingView.com
Bottom Signals Stack Up As Former Resistance Holds As Support
Last night we also had a weekly close in Bitcoin, which has caused the Relative Strength Index-based moving average to slightly turn upward. In the past, this was all that was necessary to change the tide in the overall trend from bear to bull.
Weekly momentum continues to get shockingly close to a bullish crossover. The repeated failure to cross bullish, yet no new lows being made is also notable. Price continues to grind and test former all-time high resistance turned support.
Several weekly indicators could suggest the bottom is in | Source: BTCUSD on TradingView.com
Related Reading: Bitcoin Reacts To 75 Basis Point Fed Rate Hike | BTCUSD September 21, 2022
The Return Of Adam & Eve In Crypto Market
Bitcoin price action could be working on forming an Adam and Eve double bottom. The same bottom formation put in the 2018 bear market bottom.
The lead into the pattern, volume trend, and various conditions of validating the formation are present, and the only thing that is missing is confirmation with a close above $25K.
Is the Bitcoin forming an Adam and Eve bottom? | Source: BTCUSD on TradingView.com
How Far Will The Unstoppable Dollar Trend Extend?
A bottom being in has more to do with the dollar at this point, but even the DXY is showing some signs of being overextended. The DXY has essentially went completely vertical. Such trends aren’t sustainable at this angle, and are bound to correct sharply.
Superimposing Bitcoin behind the DXY and the DXY behind the 2017 BTCUSD chart could provide some clues to what might happen next. On the right, the DXY made a higher high, before collapsing. The DXY bottom turned out to be the top in the 2017 Bitcoin bull run.
Looking at the DXY chart with BTC behind it, the same sort of higher high setup ultimately resulted in a rejection and breakdown. The first level of support was swept, and at the second level, a bottom was found. If the anti-correlation continues between the dollar and Bitcoin, then if the DXY tops out, the next crypto bull run could follow.
Is the DXY forming an ending diagonal? | Source: BTCUSD on TradingView.com
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Featured image from iStockPhoto, Charts from TradingView.com