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Bitcoin price is trading around key resistance today and could be set for a break to the upside. Prerequisite: The bulls manage to close the daily candle above $21,500. Although the cryptocurrency is still posting big losses on higher time scales, it could be on the verge of a critical move.
Currently (as of this writing), Bitcoin (BTC) is trading at $21,700, up 2% and down 7% in 24 hours and 7 days respectively. As mentioned, critical resistance stands at $21,500 – a daily candle above this level could signal further progress.
Material Indicators (MI) data shows the importance of $21,500. Bitcoin has been rejected at this level at least twice in the past week. This shows the importance of breaking out on a low time horizon.
This move could give the market more confidence in a possible shift in momentum from near-term downside to upside. Key indicators showed a rise in order books. This indicates a fake or retest of the support levels.
“Look at the bitcoin liquidity boom on the D chart (daily chart). When we see liquidity moving strongly, it’s hard to trust new liquidity appearing on the order book. If bitcoin price goes back to $21.5, beware of (false) flag draws.
As the chart above shows, supply liquidity (buy orders) is around $21,000. These levels should act as support in the face of increasing pressure. Keith Alan, co-founder of Content Indicators, identified an ascending triangle pattern on Bitcoin’s 4-hour chart.
When will Bitcoin see bullish momentum again?
The cryptocurrency could try to break out of these levels — or range aside until Friday. On this day, the Chairman of the Federal Reserve (Fed) Jerome Powell will give a speech. This could give the markets more confidence to continue bullish. Alan on this:
“An ascending triangle pattern is forming on BTC’s 4-hour chart. There would be technical resistance in the mainstream media to break out, which coincides with liquid order book demand. Of course, we may be moving in this area by the time Fed Chairman Powell speaks in Jackson Hole.”
Additional data provided by Whalemap shows: BTC price has reached historical positive levels. According to BTC Maximum Probable Loss (MPL), the cryptocurrency experienced massive panic selling. Historically, it was a short-term low that led to appreciation.
Historically there has been panic selling at a loss and taking low profits in anticipation of an increase in price #Bitcoin
Let’s see what happens this time pic.twitter.com/rzvM0YmGps
— whale map (@whale_map) August 24, 2022
Text credit: Newsbtc
Last updated on August 25, 2022
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