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:
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
Source: NewsBTC.com
