Bitcoin has surged past $62,000 just days after the infamous “Crypto Black Monday,” drawing attention from traders who have identified a bullish pattern on the seven-day price chart. This pattern suggests that Bitcoin may have reached its lowest point.
Crypto trader Matthew Hyland remarked on August 8 about Bitcoin’s significant upward movement, noting the formation of a bullish hammer on the weekly timeframe. Hyland expressed confidence that Bitcoin has found stability within this price structure.
As of the mentioned date, Bitcoin briefly reached $62,510 before retracing to $61,068. The asset has experienced a 12.46% increase from the previous day, according to CoinMarketCap figures.
The rapid recovery follows Bitcoin’s dip below $50,000 on August 5, a moment referred to as “Crypto Black Monday.” Despite this sharp decline, some traders view the subsequent rebound as a potential bear trap, where strategic selling temporarily suppresses prices to trap short-sellers.
The shift in sentiment among futures traders is evident, with the majority now holding long positions over short ones. Data from CoinGlass shows 52.48% in long positions against 47.52% in short positions.
Furthermore, Morgan Stanley’s recent decision to allow its financial advisers to recommend Bitcoin exchange-traded funds to clients has added to the positive market sentiment.
While some analysts believe that Bitcoin has bottomed out, others foresee further downside before new all-time highs are reached. Markus Thielen from 10x Research anticipates Bitcoin dropping to the low $40,000s for an ideal entry into the next bull market, while Timothy Peterson of Cane Island Alternative Advisors suggests that Bitcoin could hit both $40,000 and $80,000 in the near future.
It is essential to note that this article does not provide investment advice, underlining the importance of conducting thorough research before making financial decisions.
Vocabulary List:
- Infamous /ˈɪn.fə.məs/ (adjective): Well known for a bad quality or deed.
- Bullish /ˈbʊl.ɪʃ/ (adjective): Characterized by rising prices or an optimistic market outlook.
- Retracing /rɪˈtreɪs/ (verb): To go back over or return to a previous position.
- Sentiment /ˈsɛntɪmənt/ (noun): An attitude or opinion towards a particular situation or issue.
- Rebound /ˈriː.baʊnd/ (verb): To recover or bounce back after a decline.
- Anticipate /ænˈtɪs.ɪ.peɪt/ (verb): To expect or predict something in the future.
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