Bitcoin Bulls Snap Back With The Bollinger Bands | BTCUSD Analysis October 5, 2022
October 05 2022 - 4:19PM
NEWSBTC
In this episode of NewsBTC’s daily technical analysis
videos, we look at the latest move up in Bitcoin price using
the Bollinger Bands across a variety of timeframes and explain why
a close above the upper band could lead to a larger move to the
upside. Take a look at the video below: VIDEO: Bitcoin Price
Analysis (BTCUSD): October 4, 2022 Bitcoin price had another decent
sized move up to above $20,000 after continuing to respect a
rounded trendline. Related Reading: Bitcoin Bounce Coincides
With Possible Macro Reversal | BTCUSD Analysis October 4, 2022
Biblical Bear Market Bottom Pattern Is Back The rounded bottom
would be the second half of an Adam and Eve double bottom
formation. This is the same pattern that resulted in the 2018 bear
market bottom and is characterized as a V-shaped correction
followed by a slower rounded bottom. Is another bear market bottom
building? | Source: BTCUSD on TradingView.com Crypto Market Gears
Up To Ride The Bands Bitcoin’s latest move up is particularly
notable due to the daily close taking place outside of the upper
Bollinger Band. As you can see from the last time this happened, it
can lead to a strong rejection back to the mid-BB. Holding above
this level could lead to a larger move to the upside. Expansions in
volatility are most important and worth paying attention to, as the
tool’s creator would probably say himself. When the Bollinger Bands
squeeze, it is a sign of low volatility – a short-lived phase that
always ends with a bang and large move. Closing today’s daily above
around $20,350 should do the trick and keep Bitcoin above the upper
band. If not, the next logical target is likely the middle-band at
$19,400. Will Bitcoin ride the bands higher? | Source: BTCUSD
on TradingView.com Related Reading: Is Bitcoin ‘Uptober’ About To
Begin? | BTCUSD Analysis October 3, 2022 Monthly Bollinger Bands
Give Two Possible Targets The monthly Bollinger Bands were tapped
for the first time in Bitcoin history during this bear market. This
suggests that Bitcoin price is extremely low relative to monthly
price action historically and it could imply a buying
opportunity. The lower band is drifting downward, which means
if Bitcoin continues downward also, the next target could be as low
as $12,000 before more dynamic support is found. If Bitcoin heads
back toward the upper band, $60,000 BTC is the target instead,
making the setup decent in terms of risk versus reward. However, if
Bitcoin can maintain upward momentum, a new uptrend could confirm.
The TD Sequential isn’t just helpful for finding potential turning
points when the series reaches a 9 or 13, a new 1 can often signify
the start of a new uptrend and is yet another important signal.
Does the 1 signify a new uptrend forming? | Source: BTCUSD on
TradingView.com Bitcoin And Nasdaq Form Potentially Bullish Q3
Candle When the September monthly candle closed it also closed the
third quarter of the year. Q3 left a doji on the Bitcoin price
chart. Doji show a point of indecision and because of this, they
are often found prior to a reversal, or prior to strong
continuation. A high timeframe morning star doji could bring the
reversal bulls need and would support a monthly push to $60,000
within the next three months. Whether BTC can hold above that level
or not remains to be seen. It is worth noting that larger hedge
funds and institutional investors take positions based on a
quarterly basis, which could explain why markets sharply reversed
to start the month of October. On the right, the Nasdaq also formed
a bullish inverted hammer on the quarterly, which also could be a
sign that Q4 is profitable for risk assets like crypto and tech
stocks. Are these reversal signals on the BTC and NDX quarterlies?
| Source: BTCUSD on TradingView.com Learn crypto technical analysis
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free educational program. Follow @TonySpilotroBTC on Twitter or
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insights and technical analysis education. Please note: Content
is educational and should not be considered investment
advice. Featured image from iStockPhoto, Charts from
TradingView.com
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