Will Bitcoin Make A Weekend Comeback? BTCUSD September 2, 2022

In this installment of NewsBTC’s daily technical analysis videos, we will look at the weekly timeframe on Bitcoin BTCUSD in anticipation of the weekend and the weekly close.

Check out the video below:

VIDEO: Bitcoin (BTCUSD) Price Analysis: September 2, 2022

With the monthly opening now out of the way and Friday here, we are looking forward to the weekend close ahead of what could be an interesting weekend in the cryptocurrency market.

The price of bitcoin followed a fractal from the bottom of the bear market. Interestingly, the Relative Strength Index also has a similar configuration to what it was then. Meanwhile, the momentum is behaving very differently according to the LMACD.

For a buy signal to occur on the relative strength index, the RSI must make a higher high and break the black line. The moving average of the RSI also held up after a retest, just like the last crypto winter.

We are also expecting a bullish crossover on the weekly LMACD. Momentum has fallen to the same level as the bear market’s last low, but continues to move sideways. The price and both indicators are potentially approaching a break in the downside resistance which could produce a bullish move.

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Could the same trend line give us another bottom? | Source: BTCUSD on TradingView.com

Bull’s hidden hope for a reversal

If a low forms here, there is potential in an important position on the trend line. The trend line doesn’t seem very important until you zoom out on monthly time frames. On the monthly basis, it is currently supporting the entire trend since 2018 on a candlestick basis.

The trend line would give us a potential hidden bullish divergence on both the RSI and the LMACD. Given the number of bearish signals from yesterday’s video, this is the upside’s best hope for a reversal.

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Will this hidden bull div hold firm? | Source: BTCUSD on TradingView.com

Related reading: WATCH: Waiting for Bitcoin Monthly: Will Crypto Sink or Increase? BTCUSD August 31, 2022

Has Powell’s downtrend been halted?

To give us an idea of ​​the trend of the next three days, which includes today and our weekend, the graph below represents the 3 days. Taking a moment for education, this is exactly how you would interpret various time frames. If you want to know how an asset might perform in months, pay more attention to the monthly chart.

The 3-day looks poised to diverge upwards according to the LMACD. The resistance of the bearish trend of the RSI continues to narrow, giving the indicator little room but to the downside, or even through it. A subjectively drawn downtrend channel could suggest that we have exited the downtrend, tested it again and are ready to move up.

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The 3-day LMACD appears ready to push higher | Source: BTCUSD on TradingView.com

Cyclical instruments to consider in Crypto Winter

In times like these, we can turn to cyclical instruments to see if there is any rhythm or rhyme where the market had hit bottom in the past. Between price, RSI and LMACD, there is no denying the visible cyclical behavior.

Bitcoin still faces its riskier environment. However, we could be looking at one of the most favorable reward setups in a very long time.

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We also take a closer look at this cyclical behavior in Bitcoin | Source: BTCUSD on TradingView.com

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Featured image from iStockPhoto, Charts from TradingView.com

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