Bitcoin (BTC), which rose to $23,000 in August 6, was boosted by new analysis that predicted a 20% increase.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Daily chart shows trader $30,000 target
TradingView and Cointelegraph Markets Pro data showed that BTC/USD rose overnight to regain its top trading range.
Although the pair failed to break above $23,500 range resistance, it appeared that the pair was still in limbo as of this writing. However, there were hopes for bullish continuation.
Material Indicators, an on-chain monitoring resource, wrote that “expect more volatility over the next wknd” in its most recent Twitter update on Aug. 5.
“If the Bear Market Rally is able to push BTC above $25k, there’s not much friction between 26k and 28k range. A loss of the trend line could be disastrous for bullish hopes.
$28,000 would be nearly two months high and more than 20% above the current spot price.
Material Indicators provided a chart that showed the trendline at $22,000, which is around Bitcoin’s current realized value.
Further, the chart showed that bid support was increasing below spot and major resistance at $24,500.
Trendline for BTC/USD buy-and-sell levels (Binance). Source: Material Indicators/Twitter
Because of a lack liquidity on exchange order book, retail traders dominate weekend trading. Institutions and professionals wait until the next trading week. This causes volatility in price action.
Analyzing the daily charts, CROW, a popular trading account, revealed even higher levels. It plans to take profits at $30,000 while Bitcoin continues making higher highs, and lower lows.
$BTC Keeping things simple. The market structure is bullish and I will remain bullish as long we make Higher Lows and Higher highs. $30k is my main area of interest to take profit.#Bitcoin pic.twitter.com/LGGyW5whB4
— CROW (@TheCrowtrades), August 6, 2022
Crypto Tony, a trader, said that Weekend is all about range trading because of the fake outs.
“I like to identify the range, and then play accordingly Ranges can be effective in identifying fake outs or true breakouts. Both can be played.
Monthly RSI hints BTC Price Comeback is Beginning
On-chain data: PlanB, the creator of Stock-to-Flow, a family of Bitcoin price models that uses stock-to-flow, flagged another relative strength index (RSI), performance flipping bullish.
Related: Analysis of Bitcoin’s capitulation in the past 2 months – analysis
RSI, a core metric that shows how comparatively overbought and oversold BTC at a given price, was at its lowest level ever in June.
PlanB suggested that RSI might even signal a halt to the bear market of 2022, as it is now rebounding.
Relative Strength Index (RSI), #bitcoin bounced back in June Is the bear market over? pic.twitter.com/hsb6S6aW0n
— PlanB (@100trillionUSD), August 6, 2022
PlanB had previously posted on Aug. 3 that BTC/USD was “far below” the stock to-flow daily estimate. This is $83,475 as of Aug. 6, according to S2F Multiple.
com. You should do your research before making any investment or trading decision.
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