In this episode of NewsBTC’s all-new daily technical analysis videos, we are looking at the Bitcoin price monthly chart and the DXY Dollar Currency Index ahead of the monthly close.
Take a look at the video below.
VIDEO: Bitcoin Price Analysis (BTCUSD): August 30, 2022
We are coming down to the wire here in the month of August, with less than 48 hours remaining until the monthly candle close. The month is especially critical for a number of pivotal reasons of which we’ll review in the video and in the text and charts below.
The Terrifying TD9 Buy Setup On Monthly Timeframes
The first and most important factor weighing over the next couple of days in the crypto market, is a looming TD9 buy setup. The TD Sequential is a market timing indicator. Simply reaching a 9-count is enough for a buy setup. However, the signal is much stronger when the series is perfected.
This can only happen with a sweep of the current low below around $17,500. It would also require a breakdown of all-time high resistance turned support and a breakdown of a decade-long monthly trend line.
A perfected TD9 setup would result in losing this trend line | Source: BTCUSD on TradingView.com
Could A Hidden Bullish Divergence Save The Day?
Bitcoin price continues to rest on the lower Bollinger Band – a first for the first ever cryptocurrency on the high timeframe chart. What we don’t want to see is price action close outside the lower band, which could lead to an explosive down-move.
Despite this risk, there are several signs that a bottom could also be in. The monthly momentum on the LMACD histogram and Relative Strength Index could be signaling a hidden bullish divergence. Stochastic is also nearing a turning point after reaching oversold conditions – another recurring bottom setup, especially when combined with a breakout of a downtrend resistance line.
Is this enough for a bottom? | Source: LTCBTC on TradingView.com
Or Will The DXY Defeat BTC Bulls Yet Again?
Remember, one half of the BTCUSD trading pair is the dollar. This means that when the dollar is strong, the BTC side of the trading pair takes a beating.
The best way to gauge the strength of the dollar is through the DXY – the dollar currency index – which is a weighted basket of top world currencies trading against the dollar. Much like Bitcoin price action is reaching oversold conditions with a possible hidden bullish divergence, the DXY…
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