February 21, 2024

Bitcoin (BTC) climbed back above $23,000 on August 6 as new analysis predicted a potential rally of 20% or more.

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

The daily chart gives the trader a target of $30,000

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

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

“More volatility is expected during the week,” on-chain monitoring resource Material Indicators wrote in part of its latest Twitter update on the 5th of August.

“If Bear Market Rally can push BTC above 25k, there is not much friction in 26k – 28k range. Losing the trendline would be bad for bullish hopes and dreams.”

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

Material indicators included a chart showing the reported trend line at $22,000 — around Bitcoin’s current realized price.

The chart further showed that bid support is rising immediately below the point, while major resistance was at $24,500.

BTC/USD Buy and Sell Levels (Binance) with Trendline. Source: Material Indicators/Twitter

Weekend trading traditionally triggers more volatile price movements thanks to a lack of liquidity in swap order books, which are 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 entertained even higher levels, revealing plans for gains only at $30,000 as Bitcoin continued to make higher highs and higher lows.

“Weekend is all about range trading because of fake outs,” Crypto trader Tony added.

“I like to determine the range and then play accordingly. Ranges are effective at spotting true ice outs or false outs. You can play both.”

The monthly RSI indicates that BTC price recovery is starting

In terms of on-chain data, PlanB, creator of the Stock-to-Flow family of Bitcoin price models, once again saw its Relative Strength Index (RSI) perform on the rise.

Related: ‘Crazy Figures’ Bitcoin Has Capitulated Over The Last 2 Months — Analysis

The RSI is a key metric that shows how comparatively overbought or oversold BTC is at a particular price, and in June it hit its lowest levels ever.

Now recovering, the RSI could even signal the end of the 2022 bear market, PlanB suggested.

In an earlier post on August 3, meanwhile, PlanB acknowledged that BTC/USD was still “well below” the daily stock-to-flow estimate of $83,475 for August 6 according to the 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.