Bitcoin (BTC) surged above $23,000 again on August 6 as new analysis predicted a potential increase of 20% or more.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
The daily chart gives the trader a target of $30K
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair rose overnight to once again sit near the top of a stable trading range.
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,” the monitoring source on the Material Indicators series wrote in part of his latest Twitter update 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 actual current price of Bitcoin.
The chart also showed an increase in bid support just below the spot, while the key resistance lies at $24,500.
BTC/USD (Binance) buy and sell levels with trend line. Source: Material Indicators / Twitter
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.
“The weekend is all about range trading because of the fake selling,” added the trader, who goes by the pseudonym “Crypto Tony.”
“I like to mark the range and then play accordingly, the ranges are effective at spotting real penetrations or fake balls. You can play both.”
Monthly RSI Hints at the Beginning of Bitcoin’s Return
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.
Related: ‘Crazy Evidence’ Bitcoin Has 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.