Categories: Bitcoin Latest News

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

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?

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