Bitcoin price: weekend volatility ‘expected’ with $22K level to hold

BTC/USD could hit $30,000 if the current daily trend of higher highs and lows continues, one trader says as the market avoids weekend losses.

Bitcoin (BTC) rose above $23,000 again into Aug. 6 as new analysis predicted a potential surge of 20% or more.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Daily chart gives trader $30,000 target

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD climbing overnight to once again sit near the top of its established trading range.

After multiple attempts to break out above range resistance at $23,500, the pair appeared still stuck in limbo at the time of writing, but hopes of bullish continuation were already there.

“Expecting more volatility over the wknd,” on-chain monitoring resource Material 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 to 26k – 28k range. Losing the trend line would be bad for bullish hopes and dreams.”

$28,000 would be over 20% higher than current spot price, and would represent a near two-month high.

Material Indicators included a chart showing the trendline mentioned sitting at $22,000 — around Bitcoin’s current realized price.

The chart further showed bid support increasing immediately below spot, while major resistance lay at $24,500.

BTC/USD buy and sell levels (Binance) with trendline. Source: Material Indicators/ Twitter

Weekend trading traditionally sparks more volatile price action thanks to a lack of liquidity on exchange order books, which are dominated by retail traders while institutions and professionals stay away until the new trading week.

Analyzing the daily chart, meanwhile, popular trading account CROW entertained even higher levels, revealing plans to take profits only at $30,000 as long as Bitcoin continued making higher highs and higher lows.

$BTC
Keeping it simple

The market structure is bullish, and I’ll stay bullish as long as we’re making Higher Lows and Higher Highs.

$30k is my main area of interest to take profit.#Bitcoin pic.twitter.com/LGGyW5whB4

— CROW (@TheCrowtrades) August 6, 2022

“Weekend is all about range trading due to the fake outs,” trader Crypto Tony added.

“I like to identify the range and then play accordingly Ranges are effective at identifying true breakouts, or fake outs. You can play both of them.”

Monthly RSI hints BTC price comeback is beginning

Turning to on-chain data, PlanB, creator of the Stock-to-Flow family of Bitcoin price models, again flagged relative strength index (RSI) performance flipping bullish.

Related: ‘Insane evidence’ Bitcoin has capitulated in past 2 months — analysis

RSI is a core metric which shows how comparatively overbought or oversold BTC is at a certain price, and in June hit its lowest levels ever.

Now rebounding, RSI could even signal an end to the 2022 bear market, PlanB suggested.

#bitcoin Relative Strength Index (RSI) bounced back in June. Bear market over? pic.twitter.com/hsb6S6aW0n

— PlanB (@100trillionUSD) August 6, 2022

In a previous post on Aug. 3, meanwhile, PlanB acknowledged that BTC/USD was still “far below” the stock-to-flow daily estimate, this being $83,475 for Aug. 6 according to automated calculator S2F Multiple.

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 conduct your own research when making a decision.

Related Posts

The Philippines halts virtual asset provider license applications

The Banko Sentral ng Pilipinas said that the closing of VASP applications begins on Sept. 1, 2022, and will last for three years. While many believe that…

Web3 helps Taiwan secure information against cyberattacks

In an effort against Chinese cyberattacks, Taiwan employs Web3 technology for decentralized file sharing post-Pelosi visit. The Taiwanese Ministry of Digital Affairs (MODA) plans to implement decentralized…

World’s Largest Asset Manager BlackRock Launches Spot Bitcoin Private Trust

After announcing it would enable bitcoin trading services, $10 trillion BlackRock now offers spot bitcoin exposure to institutions in a private trust. BlackRock has launched a spot…

Attackers Wipe Out $3.5M From Crypto Game Dragoma Through Rug Pull Technique

Scamming and hacking activities seem to be skyrocketing within the crypto industry. Even with the increase in innovation and technological application in the crypto space, criminals are…

Bitpay Reveals Prepaid Cardholders Can Get up to 15% Cash Back Rewards via Select Retailers

The Atlanta-based crypto payment services company Bitpay has announced that Bitpay’s prepaid cardholders are eligible for cash back rewards if they use their card with participating retailers….

Ankr Receives a Strategic Investment from Binance Labs

Ankr is a well-known Web3 infrastructure provider. In a nutshell, the protocol works in the background, but it makes using decentralized applications, wallets, as well as crypto-based…

Generated by Feedzy