Has Bitcoin Price Broken Out Of Downtrend Resistance? BTCUSD

In this episode of NewsBTC’s daily technical analysis videos, we examine a possible breakout of Bitcoin price on linear scale. We also compare the breakout on logarithmic scale to determine if the signal might be a reliable sign the bottom could be in.

Take a look at the video below:

VIDEO: Bitcoin Price Analysis (BTCUSD): October 6, 2022

Is This The Bitcoin Breakout We’ve Been Waiting For?

Bitcoin price has broken out of an important downtrend line on linear scale. The downtrend line connects the peak at $68K, the top in March at $48K, and several recent rejections. On the lowest timeframes, Bitcoin has pushed outside of this diagonal sloping trend line.

Before bulls begin to celebrate, BTCUSD is best charted on logarithmic scale. Switching to log scale immediately makes the trend line seem obsolete. Moving the trend line across the same turning points in the market, produces a lot less steep of a downtrend line.

BTCUSD_2022-10-06_17-15-46

Linear scale breakout leaves room leftover in log scale | Source: BTCUSD on TradingView.com

BTCUSD Momentum Comparison Using The MACD And LMACD

The standard MACD tool also makes sense to use with a linear scale chart. But if you want more direct comparisons of momentum across larger time scales, you also need to use a logarithm version of the tool. Using the regular MACD to compare past price action isn’t practical.

The LMACD also tends to provide more reliable signals. For example here, Bitcoin has already crossed bullish on the MACD long ago, while the LMACD is only about to confirm after several more weeks of sideways.

BTCUSD_2022-10-06_17-19-02

Why The Log Scale Shows Several More Weeks Of Crypto Winter

A historical view of linear scale versus log scale shows the difference between the two types of charts across BTCUSD price action. On the linear chart, anything prior to 2017 looks like a flat line, meanwhile there were price swings of thousands of percent up and 80 to 90% down several times over. But again, there is that breakout.

Comparing the same type of breakout during past bear markets shows that there is very little significance on linear scale. In 2018, BTC broke out of several downtrend resistance lines, only to form new ones. In 2014, BTC made it out of the downtrend, only to later retest the line as resistance turned support.

Diagonal downtrend lines in log scale are endlessly more reliable. The log downtrend lines in linear scale show that Bitcoin has a lot more to go before it breaks free of this crypto winter.

BTCUSD_2022-10-06_17-21-52

Related Posts

pure bitcoin c213ce83f6e48a5c90ab8972e17de710

How to Insure Your Bitcoin Cold Storage: Policy Comparison and Cost

Introduction: The Hidden Risk of Cold Storage When it comes to safeguarding your Bitcoin, cold storage is often hailed as the gold standard. Hardware wallets, paper wallets, and even air-gapped…

Read more
633f77aa e12c 49b0 8f83 909431072a30 1

Best Signal-Provider Platforms for Professional Crypto Day Traders

  In the fast-moving world of cryptocurrency day trading, every second counts. One strong signal can be the difference between a profitable move and a costly error. That’s why professional…

Read more
image 15 1024x852 1

Top 7 Crypto Portfolio Tracker Apps for 2025 (Ranked by Fees, Sync Speed & Tax Reporting Accuracy)

Cryptocurrency investing has matured from a speculative hobby into a full-blown financial strategy. With more tokens, chains, and DeFi projects entering the market daily, managing your crypto portfolio manually just…

Read more
AdobeStock 193582713 e1651154504351

Why Every Crypto Investor Needs a Mobile Wallet with Fingerprint or Face ID – Top Picks for 2025

  The rise of digital assets has revolutionized the financial landscape, giving birth to a decentralized economy that’s open 24/7, borderless, and continuously evolving. As this revolution marches forward into…

Read more
69528071a8144fef7711fadbf034910a

Crypto Security 101: How to Detect Fake Wallet Apps, Airdrops & Phishing Links Before It’s Too Late

Crypto Security 101: How to Detect Fake Wallet Apps, Airdrops & Phishing Links Before It’s Too Late In a world where blockchain is redefining how we transact, invest, and store…

Read more
Benefits of Using a Cold Storage Wallet 1140x855 1

Best Cold Wallets for Storing Bitcoin Safely in 2025

Cold Wallets have become the gold standard for long-term Bitcoin storage, combining air-gapped security with user control. As the crypto space matures, 2025 brings new entrants and refinements to established…

Read more

Leave a Reply

Your email address will not be published. Required fields are marked *