Bitcoin (BTC) surged above $23,000 again on August 6 as new analysis predicted a potential rally of 20% or more.
The daily chart gives the trader a target of $30K
After several attempts to break above the range resistance at $23,500, the pair appeared to be still stuck in limbo at the time of writing, but hopes for a continuation of the rally were already there.
“Expect more volatility throughout the week,” Material Indicators wrote in part of the latest Twitter update On August 5.
“If a bear market rally can push bitcoin above 25K, there will be little friction in the 26-28K range. Losing the trend line would be bad for bullish hopes and dreams.”
$28,000 will be 20% higher than the current spot price and mark the highest level in nearly two months.
Physical indicators included a chart showing the mentioned trend line at $22,000 – around the current bitcoin Checked price.
The chart also showed an increase in bid support just below the spot, while the key resistance lies at $24,500.
Weekend trading traditionally sparks more volatile price action thanks to a lack of liquidity in exchange order books, which is dominated by retail traders while institutions and professionals stay away until the new trading week.
Meanwhile, analyzing the daily chart, the popular CROW trading account hit higher levels, revealing plans to take profits only at $30,000 as long as Bitcoin continues to make higher highs and higher lows.
keep it simple
The market structure is bullish, and I will stay bullish as long as we make higher lows and higher highs.
– Crow (@TheCrowtrades) August 6, 2022
“The Weekend is All About Range Trading Because of the Fake Fallacies,” Crypto pseudonym trader Tony added.
“I like to mark the range and then play accordingly, the ranges are effective at spotting real breakthroughs, or fake balls. You can play both.”
Monthly Relative Strength Index hints at the beginning of a Bitcoin price comeback
Turning to the on-chain data, PlanB, the pseudonym generator of the stock streaming family of Bitcoin price models, once again indicates that the performance of the RSI is flipping upward.
RSI is basic scale Which shows how relatively overbought or oversold BTC is at a certain price, and in June it reached all-time lows.
Plan B suggested that the RSI may now signal the end of the bear market in 2022.
– PlanB (@100 trillion USD) August 6, 2022
In a previous post on August 3, PlanB acknowledged that BTC/USD is still “significantly below” the daily estimate of stock flow, which is $83,475 on August 6 according to its automated calculator. S2F Multi.
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