In this episode of NewsBTC’s daily technical analysis videoswe review various technical and fundamental signals on the monthly Bitcoin price chart to see if we are nearing a bottom in crypto.
Watch the video below:
VIDEO: Bitcoin (BTCUSD) Price Analysis: October 3, 2022
Bearish BTC Momentum Begins To Decline… Maybe
The October monthly candle opened with a rose on the LMACD histogram. This signal has in the past put bear markets back into hibernation mode for at least a year or more, and ssuggests a major shift in momentum. But October must close bullish to confirm and cement the change of color on Bitcoin’s monthly chart.
The monthly Relative Strength Index remains the lowest in Bitcoin history, but is grinding along the bottom of a downward sloping channel. The same downward slope connected past RSI peaks.
Bitcoin bearish momentum might be weakening | Source: BTCUSD on TradingView.com
Bitcoin Investors Could Get Over Their Loss
The Coppock Curve also finally touched down at the same level where past bear market bottoms occurred. Time cycle tools also suggest that there could be some rhythmic behavior to Bitcoin that is about to develop.
The Coppock Curve was created by ESC Coppock, who was asked by his church to identify long-term buying opportunities for investors. It’s based on the idea that it takes between 11 and 14 months for a bear market to end, because that’s about how long it takes for a person to get over grief over a major loss.
Did Satoshi Call The Bottom In Crypto?
Another possible bottom signal is not technical, but fundamental. Bitcoin price has now been in the lower range of the cost of production around the same time as the bottom of the 2018 bear market.
This is remarkable, because in goods, prices are fundamentally close to the cost of production. Even the creator of Bitcoin, Satoshi Nakamoto spoke about this.
“The price of any commodity tends to gravitate towards the cost of production. If the price is below cost, then production slows down. If the price is above cost, profit can be made by generating and selling more. At the same time, the increased production would increase the difficulty , pushing the cost of generation to the price.”