The price of Bitcoin has been trading about key resistance during today’s trading session and could be positioning for a break higher if bulls managed to close the daily candle above $21,500. The cryptocurrency is still suffering from heavy losses in higher time frames, but it may be about to make a big move.
Bitcoin (BTC), currently trading at $21,700. It has made a 1% profit, and a loss of 9% over the last 7 days and 24 hours. The critical resistance level is $21,500. A daily candle that closes above this level may indicate that the price could trend further.
Material Indicators (MI), data shows $21,500 is important. Over the last week, Bitcoin was rejected at least twice at these levels. Therefore, it is important to have a Bitcoin breakout within a very short period of time.
The market might feel more confident about the possibility of a shift from short-term bullish to bearish momentum by this upside movement. Material Indicators are reporting a rise in orderbook activity that could indicate either a fakeout, or a retest of support levels.
The D chart shows BITCOIN liquidity moving around. When we see liquidity moving aggressively, it’s difficult to gain confidence in new liquidity that appears on the orderbook. Be aware of fakeouts and rug pulls if bitcoin prices drop below $21.5k
This chart illustrates that the level of bid liquidity (buying or selling orders) was around $21,000. This level should be considered support for a possible increase in downside risk. Material Indicators founder Keith Alan has identified an ascending triangular pattern in the Bitcoin 4-hour Chart.
This is When the Market Could See Bitcoin with Bullish Momentum
These levels could be broken by the cryptocurrency, but it may move in a sideways direction until Friday. Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), is expected to give a speech on Friday and may provide more support for bullish continuation. Alan said:
The BTC 4-hour charts show an ascending triangle pattern. Breakouts would face technical resistance at key Moving Averages. This is confluenced with ask liquidity. This range may be cut until Powell, the FED Chairman, speaks in Jackson Hole.
Additional data provided by Whalemap shows BTC’s price has reached a historically positive level. According to BTC’s Maximum Probable Loss (MPL), the cryptocurrency saw a massive panic selling which has historically marked a short-term bottom leading to appreciation.
Panic selling and taking low profits has historically presaged an increase in prices. #Bitcoin
Let’s see what happens this time pic.twitter.com/rzvM0YmGps
— whalemap (@whale_map) August 24, 2022