WATCH: Bitcoin Bloody Monday Leads To Reversal Hammer | BTCUSD September 19, 2022

Tony "The Bull" Severino

Last Updated: June 11, 2024 2:26 pm

4 mins read

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In this episode of NewsBTC’s daily technical analysis videos, we examine a recent showing from bulls after a bloody Monday morning open in Bitcoin price action.

Take a look at the video below:

VIDEO: Bitcoin Price Analysis (BTCUSD): September 19, 2022

Last night, we had the weekly close in Bitcoin price, and overnight, there was a deep plunge to the low $18K region. However, since the 9AM Monday morning open, prices have climbed by more than 5% already leaving a long wick behind.

Bull Stop Bears Short With Hammer Time

Bitcoin price is forming a hammer. A hammer is a type of bullish reversal signal in Japanese candlesticks that represents a large, sudden presence from bulls once a key price objective was reached.

On daily timeframes, there isn’t all that much significant going on otherwise to confirm the signal. Price has once again touched the lower Bollinger Bands where the reaction occurred. The RSI suggests that the strength behind the move was very weak despite the depth.

Stochastic has also fallen to the oversold line. Holding above it leads to short-term rallies, but as you can see in the past price can fall right back down.

BTCUSD_2022-09-19_11-44-10

Despite the plunge, there wasn't much strength from bears | Source: BTCUSD on TradingView.com

Weakening Weekly Momentum Could Be Ready To Turn

Since today is the first day of the week, the weekly candle in Bitcoin currently is a hammer also. With several days remaining before the close, it is unlikely it will stay that way. The head of the hammer, or real candle body, is hanging on just above former all-time high resistance.

Zoomed in closely, you can see why this move was especially demoralizing for bulls. Any traders who entered on leverage will have been stopped out after months of position building, leaving only those who entered on the wick to $17,500 remaining in a long position.

Given the macro situation and the extreme bearish sentiment, new lows appear to be a given. However, bearish momentum has been weakening on weekly timeframes, which is a bullish signal to go with a hammer candle. If bulls can close the weekly histogram in the green and complete a bullish crossover on the LMACD, a sustained rally could materialize.

Comparing it with the 2018 bear market bottom, once crossed, Bitcoin never returned to those prices.

BTCUSD_2022-09-19_11-39-46

Bears expose weakness on weekly timeframes | Source: BTCUSD on TradingView.com

Why Bitcoin Bulls Have 11 Days To Save September

There are only 11 days left in the monthly candle, and this is all the time bulls have left to prevent a much deeper selloff in BTC.

Although the current candle looks ugly, compare it to past levels where a meaningful reversal began. A doji pattern to close September could be the beginning of a cluster of support forming that tells the market new lows won’t be happening.

The onus is on bulls to make a strong showing within the next 11 days to put bearish momentum on monthly timeframes to a stop. In the past, the histogram turning pink was the turning point that let the market know bulls were taking back control over crypto.

How will September end?

BTCUSD_2022-09-19_11-42-22

Can bulls finally stop bearish momentum? | 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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