Bitcoin has taken 10% back in a dramatic move following the announcement of October CPI data. CPI came in below expectations, causing a melt up in risk assets including cryptocurrencies.
Take a look at the video below:
VIDEO: Bitcoin Price Analysis (BTCUSD): November 10, 2022
Before suggesting any type of bottom is in, more downside could still be ahead, with this recent movement being nothing more than a bearish retest.
Did The Drop Fill Out A Bullish Wedge Pattern?
The downward move might have filled out a massive bullish wedge, making for the third touch and daily close at the bottom trend line. There is also a daily bullish divergence on the Relative Strength Index, so long as BTCUSD doesn’t make new lows again today. But given all the panic out there, more collapse could be ahead.
Does the bull div support a bullish wedge pattern? | Source: BTCUSD on TradingView.com
Related Reading: Bitcoin Bloodbath Takes Crypto To New Bear Market Lows | BTCUSD November 8, 2022
Bitcoin RSI Reaches Most Oversold Monthly Level Ever
On two different timeframes, Bitcoin is working on some record-breaking signals. Weekly timeframes shows a possible bullish divergence. This would be the first in the history of Bitcoin after reaching oversold conditions on the RSI.
The monthly Relative Strength Index is also the most oversold in the entire history of the cryptocurrency market.
Weekly and monthly RSI are giving history-making signals | Source: BTCUSD on TradingView.com
Related Reading: Bitcoin Price: Can Cyclical Tools Predict The Next Bubble? | BTCUSD November 7, 2022
The Bottom Is Near According To Cyclical Perfection
After this latest collapse, each past bear market bottom now lines up accurately down to the one-week timeframe. The bottom will be between now and November 16th if the tool remains accurate down to the daily timeframe. The bottom could already be in, but there are still three whole days remaining in this weekly candle to finish.
Bitcoin also could be working on holding onto the drawn trendline on a closing basis only. If the top cryptocurrency holds at this level, we could potentially get a fifth impulse according to Elliott Wave Theory.
Could this be the last wave in Bitcoin for some time? | Source: BTCUSD on TradingView.com
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Featured image from iStockPhoto, Charts from TradingView.co
