In this episode of NewsBTC’s daily technical analysis video, we examine the bitcoin price following the October monthly close and the new November candle opening.
Take a look at the video below:
Video: Bitcoin Price Analysis (BTCUSD): November 1, 2022
BTC Production Cost Equals 2018 Bear Market
To begin, we are looking at the cost of producing each BTC. Bitcoin is now below the cost of production metric on par with the longest 2018 bear market ever. But this could also suggest at least another month of sideways price action.
Bitcoin is below the cost to produce each coin for most miners | Source: BTCUSD on TradingView.com
Related Reading: Inverted Bitcoin Chart Bears Don’t Want To See | BTCUSD Analysis October 27, 2022
Bitcoin Momentum Is Rising From Lows
Monthly momentum is not changing as rapidly as during the 2018 bear market, leaving some risk that higher lows are possible. If the currently pink histogram closes red again, expect a major decline.
The Monthly Stochastic is also reversing sharply. The previous bottoms have been pin-pointed in the previous crossover, but there will be no bull run until the tool breaks out of the oversold area.
Will we see a cyclical conclusion in the dollar?
On the left, we have the monthly BTCUSD using the Fischer transform. Statistics-based technical indicators are used to find precise turning points in market cycles. Monthly fissures on bitcoin are not only at the level where its price action has been in the past, but each bottom has also been repeated cyclically with astonishing accuracy.
On the right, the dollar currency index is showing a top signal opposite bitcoin’s bottom signal, while on the monthly time frame is at the most extreme divergence in the index’s entire history.
If DXY halts or reverses from here, Bitcoin could resume its bull run. If the dollar gains momentum to continue climbing, the cryptocurrency market could see new lows.