In this episode of NewsBTC’s daily technical analysis videos, we flip the Bitcoin price chart upside down to get a unique perspective on the market.
Take a look at the video below:
VIDEO: Bitcoin Price Analysis (BTCUSD): October 27, 2022
Inverted Bitcoin Price Chart Could Suggest Bear Market Is Over
When price action seems confusing, inverting the chart of any asset can help to remove bias and provide a clearer picture. Looking at BTCUSD from this perspective, it sure looks like a retest of horizontal support turned resistance. There is also an ongoing breakdown of an uptrend line. But remember, everything is upside down.
On higher timeframes, diagonal downtrend resistance remains intact. We can also clearly see very similar price action across the last major “top” which is actually the 2018 bear market bottom. When you flip things right side up again, does Bitcoin really look all that bearish?
Bitcoin bulls can turn that frown upside down | Source: BTCUSD on TradingView.com
Related Reading: Are Bitcoin Bulls Ready To Stampede? | BTCUSD Analysis October 25, 2022
BTCUSD Weekly RSI Buy Signal Days Away From Confirming
Moving along, we also have a potential buy signal on the weekly Relative Strength Index. This one is particularly important, as this is how the tool’s creator intended it to work. The buy signal happens when a higher high is made on the RSI, after reaching oversold conditions and holding above oversold territory on a subsequent bounce.
It does help that BTCUSD weekly is also working on breaking out of downtrend RSI resistance also at the very same time. Looking back at past Bitcoin bottoms, we can see that it was this exact buy signal that put in each bottom on weekly timeframes. We can also see there is a cyclical rhythm to when each downtrend has come to its conclusion.
The End Of The Dollar Rally Could Conclude Crypto Winter
If that was a RSI buy signal on the BTCUSD weekly, what we are about to see is a sell signal on the RSI via the DXY weekly. The sell signal on the Dollar Currency Index is beginning to break down from a diagonal RSI support line, and break down from its ongoing parabola.
Putting the DXY and Bitcoin chart side to side, we can see that there are directly opposing signals on each chart. Watch the full video for the complete analysis and more comparisons.
Source link
