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

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

BTC/USD 1-hour candlestick chart (bit stamp). Source: TradingView

Daily chart gives the trader a target of $30,000

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

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

“Expect more volatility throughout the week,” material chain monitoring 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 between 26k and 28k. Losing the trendline would be bad for optimistic hopes and dreams.”

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

Material Indicators include a chart with the said trendline at $22,000 – around the current realized price of Bitcoin.

The chart further showed that the bid support rose directly below the spot, while the main resistance was at USD 24,500.

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

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

Meanwhile, when analyzing the daily chart, the popular trading account CROW had reached even higher levels and revealed plans to take profits at just $30,000 as long as Bitcoin continued to make higher highs and higher lows.

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

“I like to identify the range and play accordingly. Ranks are effective at identifying real breakouts or fake outs. You can play both.”

Monthly RSI Hints BTC Price Comeback Begins

As for data in the chain, PlanB, the pseudonymous creator of the stock-to-flow family of Bitcoin price models, has remarked that its relative strength index (RSI) performance was bullish.

Related: ‘Insane Evidence’ Bitcoin Has Capitulated In The Last 2 Months – Analysis

RSI is a core value that shows how relatively overbought or oversold BTC is at a given price, reaching its all-time low in June.

With the RSI now recovering, it could even end the 2022 bear market, PlanB suggested.

In an earlier post on Aug. 3, PlanB acknowledged that BTC/USD was still “well below” the daily stock-to-flow estimate, which is $83,475 for Aug. 6 according to the computerized 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 carries risks, you should do your own research when making a decision.