Bitcoin At Bullish Point After Panic Selling, Will BTC Repeat History?
The price of Bitcoin has been around key resistance during today’s trading session and could position itself for a break higher if bulls managed to close the daily candle above $21,500. The cryptocurrency is still recording heavy losses on higher time frames, but could be on the verge of a decisive move.
At the time of writing, Bitcoin (BTC) is trading at $21,700 with a gain of 1% and a loss of 9% in the last 24 hours and 7 days respectively. As mentioned, critical resistance stands at $21,500, a daily candle above this level could suggest that the price is trending further.
Data from Material Indicators (MI) highlights the importance of $21,500. Bitcoin has rejected at least twice around these levels, in the last week. Thus, the importance of an outbreak is on a low time frame.
This upside move could give the market some confidence in a potential shift in momentum from short-term bearish to bullish. Material indicators have registered an increase in order book activity which may suggest a falsification or a re-test of support levels:
Watching the BITCOIN liquidity jump around on the D chart (daily chart). When we see liquidity moving aggressively, it is difficult to gain confidence in new liquidity appearing in the order book. If the bitcoin price goes back to $21.5000, be aware of fakeouts.
As the chart above shows, bid liquidity (buy orders) has settled around $21,000. These levels should act as support in the event of an increase in downside pressure. Keith Alan, co-founder at Material Indicators, identified an ascending triangle pattern in the Bitcoin 4-hour chart.
Here’s When the Market May See Bitcoin With Bullish Momentum
The cryptocurrency may attempt to break above these levels, as mentioned above, or move sideways until this Friday. On this day, US Federal Reserve Chairman Jerome Powell will give a speech and may give markets more confidence in a bullish continuation. Alan so:
Ascending triangle pattern is forming on the BTC 4-hour chart. A breakout would encounter technical resistance at the key moving averages that coincide with ask liquidity in the order book. Ofc, we can only cut this range until FED Chairman Powell speaks from Jackson Hole.
Additional data provided by Whalemap shows that BTC’s price has reached a historically positive level. According to BTC’s Maximum Probable Loss (MPL), the cryptocurrency saw massive panic selling that has historically marked a short-term bottom that has led to appreciation.
Historical panic selling with losses and low profit taking heralded an increase in price for #Bitcoin
Let’s see what happens this time pic.twitter.com/rzvM0YmGps
— whale map (@whale_map) 24 August 2022
