In this installment of NewsBTC’s brand new daily technical analysis videos, we revisit the Bitcoin price monthly chart as well as the monthly chart of Ethereum and the major stock market indices that show high correlation with crypto.
Check out the video below.
VIDEO: Bitcoin Price Analysis (BTCUSD): August 31, 2022
Not much to report since yesterday’s video, so all eyes remain on the crucial monthly close for Bitcoin and other risky assets. As you learned in yesterday’s video, monthly BTCUSD is in a TD9 buy setup and could risk a lower low that could perfect the series. In the next video, we take a final look at the monthly timeframes ahead of tonight’s close.
One Last Look at the Bitcoin (And Other Cryptocurrencies) Monthly Support Line
Today’s August monthly close is crucial for all risky assets – including cryptocurrencies and stocks. After attempting a recovery, Bitcoin, Ethereum and major stock indices were rejected to support them. Holding at this support level is the first step in a recovery, while a loss is a clearer sign of additional downside.
In the chart below, we can see that all separating BTCUSD from catastrophic new lows is a horizontal line – former all-time high resistance turned support. If the level fails to hold as support, crypto could see an extended bear market.
The S&P 500 and Nasdaq losing their support levels has even more dangerous implications and could potentially fuel a recession in the United States.
Bitcoin is hanging by a thread from a key resistance turned support level | Source: BTCUSD on TradingView.com
Cyclical tools give hope for a bottom
There is no denying that things are looking negative for Bitcoin and other risk assets as of this writing, the cyclical behavior stemming from BTCUSD’s first major bearish decline may offer hope that the worst is over and a new bullish phase is beginning could.
In the video we compare past cycles using the LMACD, Relative Strength Index, Stochastic and Average Directional Index. The fact that these tools may be suggesting a bottom is in place could provide a clue as to how the monthly candle will close tonight. With fewer than hours left in the monthly candle, it becomes a tact.
We also consider this cyclical behavior at Bitcoin | slightly more specific Source: BTCUSD on TradingView.com
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Featured image from iStockPhoto, charts from TradingView.com
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