WATCH: Daily Crypto Technical Analysis August 22, 2022: Bitcoin Price (BTCUSD)
August 22 2022 - 8:56AM
NEWSBTC
Welcome to the first episode of NewsBTC’s all-new daily technical
analysis videos. In the first episode, we are looking at Bitcoin
price action using the weekly BTCUSD price chart. Specifically,
this episode looks at Bitcoin’s “most profitable buy signal” in its
entire history: the hash ribbons. In addition, we analyze weekly
momentum using the logarithmic MACD to try to understand if a
bottom could be in. Take a look at the video below. VIDEO: Bitcoin
Price Analysis (BTCUSD): August 22, 2022 All About The
Hash Ribbons The Hash Ribbons were created by Bitcoin analyst
Charles Edwards. They are a pair of moving averages based on the
Bitcoin hash rate and mining difficulty, and signal when miners are
capitulating. When this phase ends, a buy signal is issued. In
fact, its buy signal has been called Bitcoin’s most profitable buy
signal, producing several thousand percent ROI on average each time
it triggers. The signal is even more profitable when it appears
prior to a Bitcoin halving The hash ribbons have triggered a buy
signal | Source: BTCUSD on TradingView.com With the hash ribbons
buy signal on the daily, weekly timeframes become more interesting
in anticipation of a possible bottom. Although a bottom could be in
already, the market has historically continued to draw down even
after the hash ribbons buy signal. Related Reading: The Most
Profitable Buy Signal In Bitcoin Just Triggered Measuring Momentum
With LMACD Yesterday gave us a fresh weekly close in BTCUSD. In
particular, we will be using the Logarithmic MACD in our analysis.
The log version of the MACD provides better comparative analysis
across past cycles. Although the MACD had opened green the week
prior, the late-week selloff uncrossed the bullish crossover and
has forced momentum sideways. The weekly MACD is at historical bear
market readings. Diverging down further would be unprecedented and
likely take Bitcoin down below $17K. Will momentum cross upward? |
Source: BTCUSD on TradingView.com However, if bulls can complete
the bull cross, in previous cycles the change in momentum was
enough to kickstart a bullish impulse. The MACD is currently one of
the most important indicators to watch on weekly
timeframes. Although a bullish crossover could confirm the
bottom, the MACD gets a reputation for being a lagging indicator
and therefore the bottom could be in long before the bull crossover
confirms. Related Reading: Has Bitcoin Price Found Support At A
Decade-Long Trend Line? The Ten Year Trend Line Adding credence to
a potential bottom, Bitcoin weekly is sitting at a long-term trend
line lasting over a decade long. The long term trend line has been
touched on 5 separate occasions including the 2014 bear market
bottom and Black Thursday in March 2020. Losing this trend line
could be disastrous for the cryptocurrency market. Will this nearly
ten year long trend line hold? | Source: BTCUSD on TradingView.com
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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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