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The Bitcoin price is trading around an important resistance today and could position itself upwards for a breakthrough. A prerequisite: the bulls manage to close the daily candle above $ 21,500. Although the cryptocurrency is still recording heavy losses on higher time scales, it could be on the verge of a decisive move.
Currently (at the time of writing this article) tradet Bitcoin (BTC) at $21,700, with a gain of 2% and a loss of 7% in the last 24 hours and 7 days, respectively. As already mentioned: the critical resistance is at $ 21,500 – a daily candle close above this level could indicate a further price increase.
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Data from Material Indicators (MI) underscores the importance of $ 21,500. Bitcoin has been rejected at this mark at least twice in the past week. This shows how important a breakout on a low time horizon is.
This upward movement could give the market some confidence in terms of a potential shift in momentum from a short-term downward movement to an upward movement. Key indicators have recorded a sharp increase in order books. This indicates a fakeout or a re-test of support levels.
“Watch the increase in Bitcoin liquidity on the D-chart (daily chart). If we see that liquidity is moving aggressively, it is difficult to gain confidence in new liquidity that appears in the order book. If the Bitcoin price drops back to $21.5, you should beware of “rug pulls” (fakeouts).“
As the chart above shows, supply liquidity (buy orders) is moving around $21,000. These levels should serve as a support in the event of an increase in downward pressure. Keith Alan, co-founder of Material Indicators, has featured in the 4-hour chart of Bitcoin an ascending triangular pattern is identified.
When will Bitcoin see bullish momentum again?
The cryptocurrency could try to break out above these levels – or move sideways by Friday. On this day, the chairman of the US Federal Reserve (Fed), Jerome Powell, will give a speech. That could give markets more confidence for a bullish continuation. Alan said this:
“An ascending triangular pattern is forming on the 4-hour chart of BTC. A breakout would encounter technical resistance at the major moving averages, which converges with demand liquidity in the order book. Of course, we may be moving in this area until FED Chairman Powell speaks in Jackson Hole.“
Further data provided by Whalemap shows: the BTC price has reached a historically positive level. According to BTC’s Maximum Probable Loss (MPL), the cryptocurrency experienced a massive panic sale. Historically, this has marked a short-term low point, which led to an appreciation.
Historically panic selling at a loss and low profit-taking foreshadowed an increase in price for #Bitcoin
Let’s see what happens this time pic.twitter.com/rzvM0YmGps
– whalemap (@whale_map) August 24, 2022
Proof of text: Newsbtc
Last updated on August 25, 2022
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