Bitcoin (BTC) surged above $23,000 again on August 6 as new analysis predicted a potential rise of 20% or more.
Daily chart gives the trader $30,000 target
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD climbed overnight to once again sit near the top of the established trading range.
After several attempts to break out resistance above the $23,500 range, the pair appeared to be still stuck in limbo at the time of writing, but the hope of bullish continuation was already there.
“Expect more volatility during the week,” chain monitoring resource Material Indicators wrote in part of its latest Twitter update on August 5.
“If the Bear Market Rally can push BTC above 25k, there is not much friction to 26k – 28k range. Losing the trendline would be bad for bullish hopes and dreams.”
$28,000 would be over 20% higher than the current spot price and would represent a nearly two-month high.
Material indicators included a chart showing the aforementioned trend line at $22,000 – around Bitcoin’s current realized price.
The chart further showed bid support rising just below the spot, while the major resistance was at $24,500.
Weekend trading traditionally triggers more volatile price action thanks to a lack of liquidity in exchange order books, which are dominated by retail traders while institutions and professionals stay away until the new trading week.
Meanwhile, analyzing the daily chart, popular trading account CROW entertained even higher levels, revealing plans to take profits at just $30,000 as long as Bitcoin continued to make higher highs and higher lows.
Keeps it simple
The market structure is bullish and I will stay bullish as long as we make higher lows and higher highs.
— CROW (@TheCrowtrades) 6 August 2022
“The weekend is all about range trading because of the false outs,” pseudonymous trader Crypto Tony added.
“I like to identify the range and then play accordingly Ranges are effective at identifying real breakouts, or false outs. You can play both.”
Monthly RSI Hints of BTC Price Comeback Begins
In terms of on-chain data, PlanB, pseudonymous creator of the stock-to-flow family of Bitcoin price models, again reported a positive performance on the Relative Strength Index (RSI).
Related: ‘Insane Proof’ Bitcoin Has Capitulated In Last 2 Months – Analysis
The RSI is a core value that shows how relatively overbought or oversold BTC is at a certain price, and in June it reached its all-time lows.
The RSI now reversing could even signal an end to the 2022 bear market, PlanB suggested.
— PlanB (@100trillionUSD) 6 August 2022
In an earlier post on August 3, PlanB acknowledged that BTC/USD was still “well below” the daily stock-to-flow estimate, which was $83,475 for August 6 according to the automated calculator S2F Multiple.
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