Bitcoin price is trading around a key resistance during today’s trading session and it could break into a position if the bulls manage to close the daily candle above $21,500. The cryptocurrency is still seeing huge losses on the higher timeframe, but it could be on the verge of a pivotal move.
At the time of writing, Bitcoin (BTC) is trading at $21,700, up 1% and down 9% over the past 24 hours and 7 days, respectively. As mentioned, a key resistance is located at $21,500, a daily candle above this level could signal further movement in the direction of the price.
BTC price is slightly up on the 4-hour chart. Source: BTCUSDT trade view
Content Indicator (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 breakouts on shorter timeframes.
This bullish move may give the market some confidence regarding a possible trend reversal from a short-term bearish to a bullish move. Content indicators are noting an increase in order book activity, which could indicate a retest of fake or support levels:
See how Bitcoin Liquidity is moving on the D Chart (daily chart). When we see liquidity growing aggressively, it is difficult to gain confidence in the new liquidity that is visible in the order book. If bitcoin price bounces back to $21.5K beware of (fake) pulling the rug.
BTC price as bid liquidity increases. Source: Content Indicator via Twitter
As the chart above shows, the bid (buy order) liquidity is around $21,000. These levels should act as support in the event of an increase in downside pressure. Keith Allen, co-founder of Material Indicator, has identified an ascending triangle pattern on Bitcoin’s 4-hour chart.
Here’s when the market might see Bitcoin bullish
As mentioned above, the cryptocurrency could attempt to breach these levels or turn 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. everyone Said,
There is an ascending triangle pattern forming on the 4-hour chart of BTC. A breakout moves into the major moving average technical resistance, which coincides with ask liquidity in the order book. OFC, we can lower that limit until Fed Chair Powell speaks to Jackson Hole.
Additional data from Whalemap shows that BTC price has reached historically positive levels. According to BTC’s Maximum Potential Loss (MPL), the cryptocurrency has seen massive panic selling that has historically marked a short-term bottom that has led to appreciation.
Historically, panicked sell-offs have indicated price increases on the back of losses and little profit-taking #Bitcoin
let’s see what happens this time pic.twitter.com/rzvM0YmGps
— Whale Map (@whale_map) August 24, 2022