Bitcoin (BTC) rose again above $23,000 until August 6, as new analysis predicted a potential gain of 20% or more.
Daily chart gives the trader a target of $30,000
Data from TSWT Markets Pro and TradingView showed that BTC/USD rose overnight to once again sit at the top of its established trading range.
After multiple attempts to break above the $23,500 range, the pair still appeared to be in limbo at the time of writing, but hopes for a bullish continuation were already there.
“Expect more volatility over the course of the week,” material chain monitoring indicators wrote in part of its latest Twitter update on Aug 5
“If the Bear Market Rally can push BTC above 25k, there isn’t much friction between 26k and 28k. Losing the trendline would be bad for optimistic hopes and dreams.”
$28,000 would be more than 20% higher than the current spot price and would be a nearly two-month high.
Material indicators include a chart with the said trendline at $22,000 – around Bitcoin’s current realized price.
The chart further showed that the bid support rose directly below the spot, while the main resistance was at USD 24,500.
Weekend trading traditionally leads to more volatile price action due to a lack of liquidity in the exchange’s order books, which are dominated by retail traders, while institutions and professionals stay away until the new trading week.
When analyzing the daily chart, the popular trading account CROW had even higher levels and revealed plans to take profits at just $30,000 as long as Bitcoin continued to make higher highs and higher lows.
To keep it 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
“Weekend is all about range trading because of the fake outs,” Trader Crypto Tony added.
“I like to identify the range and play accordingly. Ranks are effective at identifying real breakouts or fake outs. You can play both.”
Monthly RSI Hints BTC Price Comeback Begins
Turning to on-chain data, PlanB, maker of the Stock-to-Flow family of Bitcoin price models, again signaled that the relative strength index (RSI) performance was bullish.
Related: ‘Insane Evidence’ Bitcoin Has Capitulated In The Last 2 Months – Analysis
RSI is a core metric that shows how relatively overbought or oversold BTC is at a given price, hitting its all-time low in June.
The RSI is now recovering and could even end the 2022 bear market, PlanB suggested.
— PlanB (@100 trillion USD) August 6, 2022
In an earlier post on Aug. 3, PlanB, meanwhile, acknowledged that BTC/USD was still “well below” the daily stock-to-flow estimate, which is $83,475 for Aug. 6 according to the computerized calculator. S2F Multiple.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of TSWT.com. Every investment and trading move carries risks, you should do your own research when making a decision.