In this episode of NewsBTC’s Daily Technical Analysis Videos, we examine today’s volatility and the reasons behind the rally’s rejection. We also look ahead to things that could give a green October to the price of Bitcoin.
Watch the video below:
Video: Bitcoin Price Analysis (BTCUSD): September 27, 2022
This morning, Bitcoin started with a big move up more than 5%, taking the top cryptocurrency to return above $20,000. Before the bulls could breathe a sigh of relief, the bears pulled the rally back a full thousand dollars and below $19,000.
On weekly timeframes, there is also such a bullish crossover on LMADD. Bears have repeatedly defended this signal. Before today’s rejection, Bitcoin was back in the green and beyond the zero-line.
Interestingly, the current weekly candlestick resembles the corresponding candlestick seen at the bullish intersection at the bottom of the 2018 bear market. Again, there is a long inverted wick that matches the crossbar. The breakout was ultimately confirmed despite bearish resistance, and was at the bottom of the last major crypto winter.
Why Bitcoin May Shut Down in Green October
Finally, on monthly timeframes, although we are far from any kind of bull cross, bears must maintain momentum or allow bulls to regain control of crypto.
With just three days left in the monthly deadline and daily, 3-day and weekly breakouts, the hunt for Green October is on. Out of the last twelve Octobers, Bitcoin has only closed four in the red.
Currently, no monthly candles have closed below the previous high in 2017, but this is what the bears are counting on. If the bulls can’t close below this level, they can send the bears to sleep for at least another three months.
Although bulls closed below the critical support level, the resulting candle looked like a monthly candle where the tide finally turned, and a new uptrend began.