weekend volatility “expected” with $22,000 level to hold

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bitcoin (BTC) surged above $23,000 again on Aug. 6, with new analysis predicting a potential upside of 20% or more.

BTC/USD 1 hour candle chart (Bitstamp). Source: Trading View

The daily chart gives the trader a target of $30,000

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD climbed overnight to once again sit near the top of its established trading range.

After multiple attempts to break above the resistance above the range at $23,500, the pair still appeared to be stuck in limbo at the time of writing, but hopes for a bullish continuation were already there.

“I expect more volatility over the weekend,” on-chain monitoring resource Material Indicators wrote in part of its latest. Twitter update August 5.

“If the bear market rally can push BTC above 25,000, there is not much friction between 26,000 and 28,000. Losing the trendline would be bad for bullish hopes and dreams.

$28,000 would be more than 20% higher than the current spot price and would represent an almost two-month high.

The material indicators included a chart showing the mentioned trend line at $22,000 – around Bitcoin current realized price.

The chart further showed that the supply support is rising immediately below the point, while the major resistance is seen at $24,500.

BTC/USD (Binance) buy and sell levels with trend line. Source: Materials Indicators/Twitter

Weekend trading traditionally triggers more volatile price action thanks to a lack of liquidity on stock market order books, which are dominated by retail traders while institutions and professionals stay away until further notice. to the new trading week.

Analyzing the daily chart, meanwhile the popular CROW trading account recorded even higher levels, revealing plans to only take profits at $30,000 as long as Bitcoin continues to make higher highs and lower lows. students.

“Weekend is all about range trading due to false exits,” Crypto trader Tony added.

“I like to identify the range and then play accordingly. Ranges are good at identifying true breakouts or false exits. You can play both.

Monthly RSI Hints BTC Price Comeback Begins

Regarding on-chain data, PlanB, creator of the Stock-to-Flow family of Bitcoin price models, again reported that the performance of the Relative Strength Index (RSI) was bullish.

Related: ‘Insane Evidence’ Bitcoin Has Capitulated Over the Last 2 Months – Analysis

ROI is a base metric which shows how BTC is relatively overbought or oversold at a certain price and in June reached its lowest levels ever.

Now rebounding, RSI could even signal the end of the 2022 bear market, PlanB suggested.

In a previous August 3 post, PlanB acknowledged that BTC/USD was still “well below” the daily stock-to-flow estimate of $83,475 for August 6 according to the automated calculator. Multiple S2F.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.





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