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In this episode of NewsBTC’s all-new daily technical analysis videos, we are once again looking at the Bitcoin price monthly chart as well as the monthly chart on Ethereum, and major stock market indexes that have a high correlation with crypto.
Take a look at the video below.
VIDEO: Bitcoin Price Analysis (BTCUSD): August 31, 2022
There isn’t much to report on since yesterday’s video, so all eyes remain on the pivotal monthly close in Bitcoin and other risk assets. As you learned in yesterday’s video, the BTCUSD monthly is on a TD9 buy setup, and could risk a lower low which could perfect the series. In the next video, we take one last look at monthly timeframes ahead of tonight’s close.
One Last Look At The Bitcoin Monthly Support Line (And Other Cryptocurrencies)
Tonight’s August monthly close is critical across all risk assets – cryptocurrencies and stocks included. After staging an attempt at a recovery, Bitcoin, Ethereum, and major stock indices have been rejected back to support. Holding at this support level is the first step in a recovery, while losing it is a clearer sign of additional downside.
In the chart below, we can see that all that is separating BTCUSD from disastrous new lows is one horizontal line – former all-time high resistance turned support. If the level fails to hold firm as support, crypto could see and extended bear market.
The S&P 500 and Nasdaq losing their support levels has even more dangerous implications, possibly adding fuel to a recession in the United States.
Bitcoin hangs on by a thread at a key resistance turned support level | Source: BTCUSD on TradingView.com
Cyclical Tools Give Hope For A Bottom
There is no denying that things look negative for Bitcoin and other risk assets at this point in time, cyclical behavior dating back to the first major bear drawdown in BTCUSD could provide hope that the worst is over and a new bullish phase could begin.
In the video, we compare past cycles using the LMACD, Relative Strength Index, Stochastic, and the Average Directional Index. The fact that these tools could indicate a bottom is in might provide a clue to how the monthly candle will close tonight. With less than hours remaining in the monthly candle, it will be a nail-biter.
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