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Breaking News: Celsius Founder Alex Mashinsky Receives 12-Year Prison Sentence

Bitcoin At Bullish Point After Panic Selling, Will BTC Repeat History?

Reynaldo Marquez
Reynaldo Marquez
2 years ago
2 mins read
crypto bitcoin

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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 still records heavy losses on higher timeframes but could be on the verge of a decisive move.

Related Reading: Chiliz Price Skyrockets, Will This Bullish Run Continue?

At the time of writing, Bitcoin (BTC) trades at $21,700 with a 1% profit and a 9% loss in the last 24 hours and 7 days respectively. As mentioned, critical resistance stands at $21,500, a daily candle close above this level could hint at the price trending further.

Bitcoin BTC BTCUSDT
BTC’s price with minor gains on the 4-hour chart. Source: BTCUSDT Tradingview

Data from Material Indicators (MI) highlights the importance of $21,500. Bitcoin has been rejected at least twice around those levels, over the past week. Thus, the importance of a breakout on a low timeframe.

This upside move might provide the market with some confidence about a potential shift in momentum from short-term bearish to bullish. Material Indicators have been recording a spike in orderbook activity which could hint at a fakeout or a re-test of support levels:

Watching BITCOIN liquidity jump around on the D chart (daily chart). When we see liquidity moving aggressively, it’s difficult to gain confidence in new liquidity that appears on the orderbook. If bitcoin price heads back down to $21.5k, be mindful of rug pulls (fakeouts).

Bitcoin BTC BTCUSDT MI 1
BTC’s price with a spike in bid liquidity. Source: Material Indicators via Twitter

As the chart above shows, bid liquidity (buying orders) has been stacking around $21,000. These levels should operate as support in case 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 Is When The Market Might See Bitcoin With Bullish Momentum

The cryptocurrency might attempt to break above these levels, as mentioned above, or move sideways until this Friday. On this day, the U.S. Federal Reserve (Fed) Chairman Jerome Powell will give a speech and might provide markets with more confidence for a bullish continuation. Alan said:

Ascending triangle pattern forming on the BTC 4-hour chart. A breakout would run into technical resistance at the key Moving Averages which has confluence with ask liquidity in the order book.  Ofc, we may just chop this range until FED Chairman Powell speaks from Jackson Hole.

Related Reading: Cosmos ATOM Breaks Above Key Resistance – Eyes $16

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.

Historically panic selling at a loss and low profit-taking foreshadowed an increase in price for #Bitcoin

Let’s see what happens this time pic.twitter.com/rzvM0YmGps

— whalemap (@whale_map) August 24, 2022 

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

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We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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