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Can Bitcoin Withstand Continued Dollar Strength? | BTCUSD September 22, 2022

In this episode of NewsBTC’s daily technical analysis videos, we examine yesterday’s perfected TD9 buy setup in Bitcoin and other potentially bullish signals.  We also compare BTC against the dollar using the DXY Dollar Currency Index.

Take a look at the video below:

VIDEO: Bitcoin Price Analysis (BTCUSD): September 22, 2022

In yesterday’s video, we warned of a new low being made due to the appearance of a TD9 buy setup. These signals can be perfected when the candle makes a lower low. Here is how that played out.

Market Timing Tool Triggers Perfect Buy Setup During FOMC Aftermath

Given the several shakeouts and the explosive intraday volatility, taking a position based on the the TD9 buy setup was not easy. The TD Sequential has also brought its resistance level down to roughly $22,700. If price can tag the red line, we could have a low timeframe reversal.

A bullish divergence on the Relative Strength Index and LMACD potentially back up this bullish signal.

Were bulls bold enough to take action at the TD9 buy setup? | Source: BTCUSD on TradingView.com
Building The Case For A Possible Bitcoin Bear Market Bottom

Momentum is also right on the zero line on weekly timeframes, where those same bullish divergences could be building. The doji candle is indicative of indecision in the market, and could be a pause prior to a reversal, or strong continuation to the downside.

Weekly momentum has also fallen to the same level where past reversals formed. A bullish crossover might be all it takes to confirm a bottom is already in. In 2018, once crossed, Bitcoin took off like a rocket with more than 300% ROI in three months.

Comparing former bear market bottoms using the Relative Strength Index, each time the indicator reached oversold conditions on weekly timeframes, the bottom was already in. The PPO Percentile Rank which helps find tops and bottoms, shows that Bitcoin has been exhibiting bottom-like behavior. Moving out from the green range often has been the start of a new bull run.

Several indicators could suggest the bottom is in | Source: BTCUSD on TradingView.com

Related Reading: When Will Crypto Winter Thaw Out? Total Crypto Market Cap (TOTAL) September 20, 2022

BTC Versus USD: It All Comes Down To The Dollar

What happens to Bitcoin at this point has more to do with the dollar. The dollar is one half of the BTCUSD trading pair, making it especially important.

The dollar has been in a powerful uptrend, as you can see in the daily chart. However, momentum has been making lower highs suggesting that the underlying strength is weakening.

The DXY dollar currency index is also potentially forming an ending diagonal, which looks much like a rising wedge. These potentially bearish signals could create a reversal in the dollar that allows Bitcoin to bounce.

A comparison with Bitcoin offers a potential example of what might happen in the dollar. After a failed upthrust, price action reversed and a high was put in.

Is the DXY forming an ending diagonal? | Source: BTCUSD on TradingView.com

Learn crypto technical analysis yourself with the NewsBTC Trading Course. Click here to access the free educational program.

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market 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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Crypto

Near Protocol Collapses Despite Rounded Bottom, Is $6 Possible?

NEAR price continues to struggle on both low and high timeframe despite showing signs of recovery in recent times. 
NEAR price trades in a range as the price looks set for a retest of key support areas.
The price of NEAR fails to break above resistance despite forming rounded bottom on the daily timeframe. 

Near Protocol (NEAR) has struggled with the less bullish scenarios as many traders and investors are beginning to get fed up with the price action as the price fails to have a relief bounce against tether (USDT). Near Protocol has shown little or no glimpse of relief bounce as the price aims for a retest of its support region at $3. With the current market looking more promising ahead of more relief bounces from altcoins, there are doubts about Near Protocol as the price isn’t as promising as others. (Data from Binance)

Near Protocol (NEAR) Price Analysis On The Weekly Chart
Weekly NEAR Price Chart | Source: NEARUSDT On Tradingview.com

Most crypto projects have found relief in the new month, with altcoins such as BTC, ETH, and even XRP continuing to show strength after weeks of downtrend movement.

The price of NEAR is not looking promising as it continues to move in its downtrend range despite attempting to break $6 and trend above this resistance.

Following a rejection from $6, the price retested its $3.5 support area. Since then, the price has struggled to recover and trend above this support level, with many traders and investors concerned about their NEAR positions.

The weekly price for NEAR closed bearish ahead of a new week, with the price opening with a range price movement, creating mixed feelings as regards the recovery of NEAR. For NEAR price to resume its bullish trend, the price needs to break and close above $6.

Weekly resistance for the price of NEAR – $6.

Weekly support for the price of NEAR – $3.5.

Price Analysis Of NEAR On The Daily (1D) Chart
Daily NEAR Price Chart | Source: NEARUSDT On Tradingview.com

On the daily timeframe, the crypto market cap price remains bullish, holding support at $850 billion ($850B); this has aided most altcoins, but not NEAR, which remains in a range-bound price movement with little price movement.

The current price of NEAR is $3.68, as the price remains below the 8 and 20-day Exponential Moving Averages (EMA), unable to break above this region. The price of $3.75 corresponds to the 8 and 20-day EMA values acting as support.

A break above this resistance region could signal a little relief for the NEAR price that has maintained a downtrend for a long.

Daily resistance for the price of NEAR – $6.

Daily support for the price of NEAR – $3.6.

Featured Image From zipmex, Charts From Tradingview

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Crypto

Bitcoin Shocker: Lightning Network Capacity Reaches 5,000 BTC

The Bitcoin Lightning Network has marked another tremendous milestone. The total public capacity had surpassed more than 5,000 BTC for the first time in history, continuing along with the growing trend of 2022. This new milestone pushes further the capability and promise of the Bitcoin Lightning network. Just like always, there was a reason behind the big push.

Bitcoin Development Ramping Up

The continuous development of the bitcoin network has been a big part of why the digital asset remains so valuable today. Being the largest decentralized network in the space, there are always developers looking for new ways to leverage the offerings of the bitcoin network and push it further into the mainstream.

Lightning Labs is a development firm that continues to focus heavily on bitcoin development and was behind the new all-time high Lightning network capacity. The developer had expanded the channel capacity of River Financial and Loop, allowing for the network to be able to accommodate even more BTC. It also follows the introduction of the new Taro Protocol, whose code was posted for public dissection last week as Lightning Labs continue to expand the capabilities of the bitcoin network.

Lightning network reaches new milestone | Source: Arcane Research

The Bitcoin Lightning network is also becoming increasingly popular among BTC users. MicroStrategy, which holds a large investment position in BTC, made the news when it posted a job offer seeking a full-time lightning network engineer. Apparently, the firm is looking to build a Lightning network-based SaaS platform for e-commerce and enterprise use cases.

Taro Protocol, mentioned above, is working towards making it possible for developers to mint, send, and receive new tokens on the bitcoin blockchain. Take the Ethereum ERC tokens as an example. It will also expand the possibilities of NFTs on the bitcoin blockchain, as well as allow for the creation of stablecoins that are based on the bitcoin blockchain. 

BTC price settles above $20,000 | Source: BTCUSD on TradingView.com

The Lightning Network is also increasingly featured in crypto payments services due to its speed. El Salvador had adopted the Lightning network to make it easier to pay with BTC in the country, and digital payment provider Strike raised $80 million in September to expand its Lightning network-based payment solutions for merchants.

Layer 2 solutions like the Lightning Network are also expected to be more important to the bitcoin network going forward. Cardano founder Charles Hoskison recently revealed that he expects the majority of BTC will likely exist outside the bitcoin network in the next five years and be wrapped in these Layer 2 solutions.

Featured image from Coindesk, charts from Arcane Research and TradingView.com

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Crypto

GMX Token, Arbitrum Favorite Get Listed On Binance, What Next?

GMX price continues to show bullish strength as price increases on all timeframes, as there is no sign of retracement. 
GMX is one of the arbitrum favorites listed on the Binance innovation trading interface. 
The price of GMX holds above support as price trends on the daily timeframe to create new all-time highs.  

GMX token (GMX) has continued to look bullish as the price trend week in week out on the Arbitrum network as GMX token gets listed on Binance innovative center. The price of GMX has seen a rosy start to its launch despite its emergence in the bear market; the price continues to trend and remain bullish even in the face of uncertainty in the market. With the current market looking more promising ahead of more relief bounces from altcoins, we could see the price of GMX token (GMX) doing extremely well. (Data from Binance)

GMX Token (GMX) Price Analysis On The Weekly Chart

The new month has come with more relief for most crypto projects, with altcoins, such as BTC, ETH, and even XRP, continuing to show strength after weeks of downtrend movement. 

The price of GMX has continued to show its bullish strength despite being rejected from the $60 mark as the price tried to trend higher, creating a new all-time high.

After a rejection from $60, the price retested its support area of $37 as price quickly bounced off, rallying with great strength to $50. With the current bullish structure, GMX has continued to sustain it is just a matter of time before the price retests its all-time high.

The weekly price for GMX closed bullish ahead of a new week, with the price opening with a more bullish sentiment. The news of the token being listed on the Binance innovation zone is a big plus for the price of GMX.

Weekly resistance for the price of GMX – $60.

Weekly support for the price of GMX – $37.

Price Analysis Of GMX On The Daily (1D) Chart
Daily GMX Price Chart | Source: GMXUSDT On Tradingview.com

On the daily timeframe, the crypto market cap price remains bullish, holding the support at $850 billion ($850B); this has helped most altcoins, including the price of GMX; despite losing its uptrend line, the price has continued to show great bullish strength to reclaim this region. 

The current price of GMX is $49.8 as the price continues to trade above 8 and 20-day Exponential Moving Averages (EMA) after flipping this into support for GMX price. The price at $40 corresponds to the values of 8 and 20-day EMA acting as support.

Daily resistance for the price of GMX – $60.

Daily support for the price of GMX – $37.

Featured Image From zipmex, Charts From Tradingview

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