In this episode of NewsBTC’s daily technical analysis videos, we examine the recent resilience in Bitcoin compared to traditional assets like gold, oil, and the S&P 500. We also compare BTC to the DXY Dollar Currency Index and past crypto bear market bottoms.
Take a look at the video below:
VIDEO: Bitcoin Price Analysis (BTCUSD): September 26, 2022
After last Friday’s market close and extreme bearish sentiment last week following the Fed meeting, most investors and traders braced for a very bloody Monday open. But Bitcoin continues to show resilience compared to other markets. In this video, we put BTC head-to-head with traditional markets and more.
Comparing Bitcoin With Gold, Oil, S&P 500, And DXY
Here we can see that Bitcoin peaked before other asset classes, and has held up better in recent days compared to gold, oil, and the S&P 500.
Considering how strong the dollar has been, Bitcoin standing up this strong here is significant. Through the DXY comparison, we can also see that BTC held up well against the USD side of its trading pair compared to other top world currencies like the pound, euro, and yen that make up the DXY index.
BTC compared to other asset classes Source: BTCUSD on TradingView.com
How Far Will The Unstoppable Dollar Trend Extend?
A bottom being in has more to do with the dollar at this point, but even the DXY is showing some signs of being overextended. The DXY has essentially went completely vertical. Such trends aren’t sustainable at this angle, and are bound to correct sharply.
Superimposing Bitcoin behind the DXY and the DXY behind the 2017 BTCUSD chart could provide some clues to what might happen next. On the right, the DXY made a higher high, before collapsing. The DXY bottom turned out to be the top in the 2017 Bitcoin bull run.
Looking at the DXY chart with BTC behind it, the same sort of higher high setup ultimately resulted in a rejection and breakdown. The first level of support was swept, and at the second level, a bottom was found. If the anti-correlation continues between the dollar and Bitcoin, then if the DXY tops out, the next crypto bull run could follow.
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