WATCH: Bitcoin Weekly Chart Fires Bottom Signals At Open | BTCUSD September 12, 2022

Tony "The Bull" Severino

1 year ago

4 mins read

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In this episode of NewsBTC’s daily technical analysis videos, we take a closer look at a variety of bullish signals in Bitcoin that fired with the most recent weekly open. However, the cryptocurrency market isn’t out of the woods, as this week must confirm the signals with a strong close.

Take a look at the video below:

VIDEO: Bitcoin Price Analysis (BTCUSD): September 12, 2022

Last night we had a weekly close in Bitcoin and have already added nearly 3% on top of around 16% from the lows swept during last week’s candle. As a result of the move, several bullish signals have fired on the candle open. But it is imperative that BTCUSD remains above current levels to confirm the signals with a full weekly candle close.

Examining The BTCUSD Weekly Buy Signals

The weekly opened with a bullish crossover of the LMACD. Even a weekly candle close and a confirmed crossover can be a trap, as we have seen on the way down in BTCUSD weekly charts. However, it is where the crossover is happening from that is particularly notable.

Bullish crossovers of the LMACD during past bear markets at such a level have resulted in a long term bottom and sustained bull run. Momentum in both the 2018 and 2014 bear markets fell to the same level.

BTCUSD weekly is also working on a buy signal on the Relative Strength Index, according to the tool’s creator, J. Welles Wilder Jr. The buy signal is activated when the RSI falls below oversold conditions, then rises from below the threshold.

If at the next pullback, the RSI doesn’t revisit oversold conditions, we have one important factor in generating the buy signal. The RSI must then make a higher high. Comparison with the 2018 bear market bottom shows this exact behavior and its impact.

Comparing past Bitcoin bear market buy signals | Source: BTCUSD on TradingView.com

Reversal Targets Retest Of $32,000 Support Turned Resistance

If at all the bottom in Bitcoin is in, the next logical target would first be closing above the middle-Bollinger Band, and then pushing to the opposite side of the bands at roughly $32,000.

On the Ichimoku, the Kijun-sen is just about at the same level as the upper Bollinger Band, highlighting a clear level of importance on weekly timeframes. Much like the last bear market, Bitcoin has just taken the Tenkan-sen, and a cloud twist occurred after a bottom was already in.

Indicator dynamic resistance could give a target of $32K | Source: BTCUSD on TradingView.com

Could A 3-Month, 300% Rally Be In The Cards For Bitcoin?

Since the condition from the 2018 bear market bottom appears so similar currently, let’s use the bars pattern to project the 2019 rally from where we are currently.

The result is a revisit to all-time highs. If you recall, the 2019 rally took only three months for BTC to gain 300%. It didn’t set a new high until almost another 18 months later.

The 2019 rally resulted in over 300% growth | Source: BTCUSD on TradingView.com

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Featured image from iStockPhoto, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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