Bitcoin price traded around the key resistance during today’s trading session and it could position itself for a break to the upside if the bulls manage to close the daily candle above $21,500. The cryptocurrency is still posting heavy losses on higher timeframes but could be on the verge of a pivotal move.
At the time of writing, Bitcoin (BTC) is trading at $21,700 with a 1% gain and a 9% loss over the past 24 hours and 7 days respectively. As mentioned, the critical resistance stands at $21,500, a daily candle close above this level could signal further price action.
BTC price with minor gains on the 4-hour chart. Source: BTCUSDT trade view
Material Indicators (MI) data highlights importance of $21,500. Bitcoin has been rejected around this level at least twice in the past week. Hence the importance of a breakout on a low time frame.
This upward move may give the market some confidence regarding a potential shift in momentum from near-term bearish to bullish. Material indicators have seen an increase in order book activity, which could indicate a fakeout or a retest of support levels:
Watch as BITCOIN liquidity bounces around on the D (daily) chart. When we see liquidity moving aggressively, it is difficult to gain confidence in new liquidity appearing on the order book. If bitcoin price dips back to $21.5K watch out for carpet moves (fakeouts).
BTC price with an increase in bid liquidity. Source: Material Indicators via Twitter
As the chart above shows, bid liquidity (buy orders) has accumulated to around $21,000. These levels should act as support in the event of an increase in downside pressure. Keith Alan, co-founder of Material Indicators, identified an ascending triangle pattern on Bitcoin’s 4-hour chart.
This is where the market could see Bitcoin with bullish momentum
The cryptocurrency could attempt to break through these levels as mentioned above or move sideways into this Friday. On that day, Federal Reserve (Fed) Chairman Jerome Powell is set to deliver a speech and may give markets more confidence for the bull market to continue. Alan said:
Ascending triangle pattern forming on the BTC 4 hour chart. A breakout would face technical resistance at the major moving averages, coinciding with ask liquidity in the order book. Ofc, we can just hack this area until Fed Chair Powell speaks from Jackson Hole.
Additional data from Whalemap shows that the price of BTC has touched historically positive levels. According to BTC’s Maximum Probable Loss (MPL), the cryptocurrency experienced a massive panic sell that historically marked a short-term bottom that led to appreciation.
Historically, panic selling at a loss and little profit taking indicated a price surge for #Bitcoin
Let’s see what happens this time pic.twitter.com/rzvM0YmGps
— Whalemap (@whale_map) August 24, 2022
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