{"id":7975,"date":"2022-09-19T16:53:34","date_gmt":"2022-09-19T20:53:34","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=7975"},"modified":"2022-09-19T16:53:34","modified_gmt":"2022-09-19T20:53:34","slug":"watch-bitcoin-bloody-monday-leads-to-reversal-hammer-btcusd-september-19-2022","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2022\/09\/19\/watch-bitcoin-bloody-monday-leads-to-reversal-hammer-btcusd-september-19-2022\/","title":{"rendered":"WATCH: Bitcoin Bloody Monday Leads To Reversal Hammer | BTCUSD September 19, 2022"},"content":{"rendered":"

In this episode of NewsBTC\u2019s daily technical analysis videos<\/a>, we examine a recent showing from bulls after a bloody Monday morning open in Bitcoin price action.<\/p>\n

Take a look at the video below:<\/p>\n

VIDEO: Bitcoin Price Analysis (BTCUSD):\u00a0September 19, 2022<\/p>\n

Last night, we had the weekly close in Bitcoin price<\/a>, and overnight, there was a deep plunge to the low $18K region.\u00a0However, since the 9AM Monday morning open, prices have climbed by more than 5% already leaving a long wick behind.<\/p>\n

Bull Stop Bears Short With Hammer Time<\/p>\n

Bitcoin price is forming a hammer<\/a>. A hammer is a type of bullish reversal signal in Japanese candlesticks that represents a large, sudden presence from bulls once a key price objective was reached.<\/p>\n

On daily timeframes, there isn\u2019t all that much significant going on otherwise to confirm the signal. Price has once again touched the lower Bollinger Bands<\/a> where the reaction occurred. The RSI suggests that the strength behind the move was very weak despite the depth. <\/p>\n

Stochastic<\/a> has also fallen to the oversold line.\u00a0Holding above it leads to short-term rallies, but as you can see in the past price can fall right back down.<\/p>\n\n

Despite the plunge, there wasn’t much strength from bears | Source: BTCUSD on TradingView.com<\/a>
\nWeakening Weekly Momentum Could Be Ready To Turn<\/p>\n

Since today is the first day of the week, the weekly candle in Bitcoin currently is a hammer also. With several days remaining before the close, it is unlikely it will stay that way.\u00a0The head of the hammer, or real candle body<\/a>, is hanging on just above former all-time high resistance.<\/p>\n

Zoomed in closely, you can see why this move was especially demoralizing for bulls. Any traders who entered on leverage<\/a> will have been stopped out after months of position building, leaving only those who entered on the wick to $17,500 remaining in a long position.<\/p>\n

Given the macro situation and the extreme bearish sentiment, new lows appear to be a given. However, bearish momentum has been weakening on weekly timeframes, which is a bullish signal to go with a hammer candle.\u00a0If bulls can close the weekly histogram in the green and complete a bullish crossover on the LMACD<\/a>, a sustained rally could materialize.<\/p>\n

Comparing it with the 2018 bear market bottom, once crossed, Bitcoin never returned to those prices.<\/p>\n\n

Bears expose weakness on weekly timeframes | Source: BTCUSD on TradingView.com<\/a><\/p>\n

Related Reading: WATCH: Ethereum Merge Sell The News Event | ETHUSD September 15, 2022<\/a><\/p>\n

Why Bitcoin Bulls Have 11 Days To Save September<\/p>\n

There are only 11 days left in the monthly candle, and this is all the time bulls have left to prevent a much deeper selloff in BTC.\u00a0<\/p>\n

Although the current candle looks ugly, compare it to past levels where a meaningful reversal began.\u00a0A doji pattern<\/a> to close September could be the beginning of a cluster of support forming that tells the market new lows won\u2019t be happening.<\/p>\n

The onus is on bulls to make a strong showing within the next 11 days to put bearish momentum on monthly timeframes to a stop. In the past, the histogram turning pink was the turning point that let the market know bulls were taking back control over crypto.\u00a0<\/p>\n

How will September end?<\/p>\n\n

Can bulls finally stop bearish momentum? | Source: BTCUSD on TradingView.com<\/a><\/p>\n

Learn crypto technical analysis yourself with the NewsBTC Trading Course. Click here<\/a> to access the free educational program.<\/p>\n

Follow @TonySpilotroBTC on Twitter<\/a> or join\u00a0the TonyTradesBTC Telegram<\/a> for exclusive daily market insights and technical analysis education. Please note: Content is\u00a0educational and should not be\u00a0considered investment advice.<\/p>\n

Featured image from iStockPhoto, Charts from TradingView.com<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

In this episode of NewsBTC\u2019s daily technical analysis videos<\/a>, we examine a recent showing from bulls after a bloody Monday morning open in Bitcoin price action.<\/p>\n

Take a look at the video below:<\/p>\n

VIDEO: Bitcoin Price Analysis (BTCUSD):\u00a0September 19, 2022<\/p>\n

Last night, we had the weekly close in Bitcoin price<\/a>, and overnight, there was a deep plunge to the low $18K region.\u00a0However, since the 9AM Monday morning open, prices have climbed by more than 5% already leaving a long wick behind.<\/p>\n

Bull Stop Bears Short With Hammer Time<\/p>\n

Bitcoin price is forming a hammer<\/a>. A hammer is a type of bullish reversal signal in Japanese candlesticks that represents a large, sudden presence from bulls once a key price objective was reached.<\/p>\n

On daily timeframes, there isn\u2019t all that much significant going on otherwise to confirm the signal. Price has once again touched the lower Bollinger Bands<\/a> where the reaction occurred. The RSI suggests that the strength behind the move was very weak despite the depth. <\/p>\n

Stochastic<\/a> has also fallen to the oversold line.\u00a0Holding above it leads to short-term rallies, but as you can see in the past price can fall right back down.<\/p>\n

Despite the plunge, there wasn’t much strength from bears | Source: BTCUSD on TradingView.com<\/a>
\nWeakening Weekly Momentum Could Be Ready To Turn<\/p>\n

Since today is the first day of the week, the weekly candle in Bitcoin currently is a hammer also. With several days remaining before the close, it is unlikely it will stay that way.\u00a0The head of the hammer, or real candle body<\/a>, is hanging on just above former all-time high resistance.<\/p>\n

Zoomed in closely, you can see why this move was especially demoralizing for bulls. Any traders who entered on leverage<\/a> will have been stopped out after months of position building, leaving only those who entered on the wick to $17,500 remaining in a long position.<\/p>\n

Given the macro situation and the extreme bearish sentiment, new lows appear to be a given. However, bearish momentum has been weakening on weekly timeframes, which is a bullish signal to go with a hammer candle.\u00a0If bulls can close the weekly histogram in the green and complete a bullish crossover on the LMACD<\/a>, a sustained rally could materialize.<\/p>\n

Comparing it with the 2018 bear market bottom, once crossed, Bitcoin never returned to those prices.<\/p>\n

Bears expose weakness on weekly timeframes | Source: BTCUSD on TradingView.com<\/a><\/p>\n

Related Reading: WATCH: Ethereum Merge Sell The News Event | ETHUSD September 15, 2022<\/a><\/p>\n

Why Bitcoin Bulls Have 11 Days To Save September<\/p>\n

There are only 11 days left in the monthly candle, and this is all the time bulls have left to prevent a much deeper selloff in BTC.\u00a0<\/p>\n

Although the current candle looks ugly, compare it to past levels where a meaningful reversal began.\u00a0A doji pattern<\/a> to close September could be the beginning of a cluster of support forming that tells the market new lows won\u2019t be happening.<\/p>\n

The onus is on bulls to make a strong showing within the next 11 days to put bearish momentum on monthly timeframes to a stop. In the past, the histogram turning pink was the turning point that let the market know bulls were taking back control over crypto.\u00a0<\/p>\n

How will September end?<\/p>\n

Can bulls finally stop bearish momentum? | Source: BTCUSD on TradingView.com<\/a><\/p>\n

Learn crypto technical analysis yourself with the NewsBTC Trading Course. Click here<\/a> to access the free educational program.<\/p>\n

Follow @TonySpilotroBTC on Twitter<\/a> or join\u00a0the TonyTradesBTC Telegram<\/a> for exclusive daily market insights and technical analysis education. Please note: Content is\u00a0educational and should not be\u00a0considered investment advice.<\/p>\n

Featured image from iStockPhoto, Charts from TradingView.com<\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-7975","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/7975","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=7975"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/7975\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=7975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=7975"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=7975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}