Bitcoin (BTC) surged above $23,000 again on August 6 as new analysis predicted a potential increase of 20% or more.
The daily chart gives the trader a target of $30K
Data from Cointelegraph Markets Pro and TradingView BTC/USD showed higher overnight to once again sit near the top of its stable trading range.
After several attempts to break above the range resistance at $23,500, the pair appears to be 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 realized bitcoin 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, when 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 phony fallacies,” Crypto 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 Bitcoin Price Begins to Return
Turning to the on-chain data, PlanB, creator of the Stock-to-Flow family of Bitcoin price models, once again pointed to the performance of the Relative Strength Index (RSI) to the upside.
Related: ‘Crazy Evidence’ Bitcoin Surrendered in the Past Two Months – Analysis
The Relative Strength Index (RSI) is a basic measure that shows how relatively overbought or oversold BTC is at a given price, and in June it reached an all-time low.
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, meanwhile, 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.
The opinions 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 risks, you should do your own research when making a decision.