Bitcoin (BTC) surged above $23,000 again on August 6 as new analysis predicted a potential upside of 20% or more.
Daily chart gives the trader a $30,000 target
Data from Cryptooshala Markets Pro and trade view showed that BTC/USD surged overnight and was back at the top of its established trading range.
After repeated attempts to break above the resistance level at $23,500, the pair seemed to still be stuck in limbo at the time of writing, but there were already hopes for a bullish continuation.
“Expect more volatility throughout the week,” on-chain monitoring resource Material Indicators wrote in part of its latest report. twitter update 5th of August.
“If a bear market rally can push BTC above 25k, then there won’t be much friction in the 26k-28k range. The loss of the trend line will be bad for bullish hopes and dreams.”
$28,000 would be more than 20% above the current spot price and represent a nearly two-month high.
The material indicators included a chart showing that the said trendline is at $22,000 – around the current Bitcoin realization price.
The chart also shows demand support rising just below spot while the main resistance is at $24,500.
Weekend trading traditionally causes more volatile price action due to lack of liquidity on exchange order books dominated by retail traders while institutions and professionals are sidelined until the new trading week.
Meanwhile, analyzing the daily chart, the popular CROW trading account showed even higher levels, revealing plans to only take profits at $30,000 as Bitcoin continued to make higher highs and higher lows.
Everything is simple
The market structure is bullish and I will remain bullish as long as we make higher lows and higher highs.
— CROW (@TheCrowtrades) August 6, 2022
“Weekends are range trading due to false outs,” Crypto Trader Tony. added.
“I like to define a range and then play according to it. Ranges are effective in identifying true breakouts or false outs. You can play both.”
Monthly RSI hints at start of BTC price recovery
Looking at data online, PlanB, creator of the Stock-to-Flow family of bitcoin price models, once again noted a bullish rise in the Relative Strength Index (RSI).
‘Insane Evidence’ Bitcoin Capitulated Over Last 2 Months – Analysis
The RSI is the main metric that shows how relatively overbought or oversold BTC is at a certain price and reached its lowest level ever in June.
PlanB suggested that now, by rebounding, the RSI could even signal the end of the 2022 bear market.
— PlanB (@100trillionUSD) August 6, 2022
Meanwhile, in a previous post on Aug. 3, PlanB acknowledged that BTC/USD is still “well below” the daily stock-to-flow estimate of $83,475 as of Aug. 6, according to an automated calculator. S2F Multiple.
The views and opinions expressed here are solely those of the author and do not necessarily reflect those of Cryptooshala.com. Every investment and trading step involves risk, you should do your own research when making a decision.
Credit : cointelegraph.com