Bitcoin (BTC) rose back above $23,000 through August 6, as new analysis predicted a potential rise of 20% or more.
The daily chart gives the trader a target of $30,000
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD rose overnight to once again settle near the top of its established trading range.
After multiple attempts to break through resistance above the range at $23,500, the pair appeared to still be stuck in limbo at time of writing, but hopes for a continuation to the upside were already there.
“Expecting more volatility through the week,” wrote on-chain monitoring resource Material Indicators in part of its latest twitter update on August 5th.
“If Bear Market Rally can push BTC above 25k, there is not much friction in the 26k – 28k range. Losing the trend line would be bad for bullish hopes and dreams.”
$28,000 would be more than 20% higher than the current spot price and would represent a nearly two-month high.
Material indicators included a chart showing the mentioned trend line at $22,000, around the current realized price of Bitcoin.
The chart further showed that supply support rose immediately below the point, while major resistance was found at $24,500.
Weekend trading traditionally sparks more volatile price action thanks to a lack of liquidity in the forex order books, which are dominated by retail traders, while institutions and professionals stay away until the new weekend week. negotiation.
Meanwhile, analyzing the daily chart, the popular CROW trading account entertained even higher levels, revealing plans to make profits of just $30,000 as Bitcoin continued to make higher highs and higher lows.
keeping it simple
The market structure is bullish, and I will stay bullish as long as we have higher lows and higher highs.
— CROW (@TheCrowtrades) August 6, 2022
“Weekend is all about range trading due to false exits,” Pseudonymous Crypto Trader Tony additional.
“I like to identify the range and then play accordingly. Ranges are effective at identifying true breakouts or false exits. You can play both.”
Monthly RSI Hints That BTC Price Recovery Is Starting
Turning to on-chain data, PlanB, the pseudonymous creator of the stock-to-flow family of Bitcoin price models, once again flagged the relative strength index (RSI) performance as bullish.
Related: ‘Insane evidence’ Bitcoin has capitulated in the last 2 months – analysis
RSI is a core metric that shows how comparatively overbought or oversold BTC is at a given price, and it hit its lowest ever in June.
Now recovering, the RSI could even signal the end of the 2022 bear market, PlanB suggested.
— PlanB (@100 billion dollars) August 6, 2022
In a previous post on August 3, PlanB acknowledged that BTC/USD was still “well below” the daily stock-to-flow estimate, being $83,475 for August 6 according to the automatic calculator. Multiple S2F.
The views and opinions expressed here 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 do your own research when making a decision.