Bitcoin paints a clear ‘double bottom’ but ailing momentum could force a $34K retest

Bullish optimism returned to the cryptocurrency marketplace connected March 1after a bulk of tokens turned greenish and Bitcoin bulls telegraphed their volition to clasp the $40,000 level arsenic enactment going forward.

Data from Cointelegraph Markets Pro and TradingView shows that the terms of Bitcoin (BTC) has surged 20% from a debased of $37,409 connected Feb. 28 to an intraday precocious astatine $44,951 connected Tuesday.

BTC/USDT 4-hour chart. Source: TradingView

Here’s what respective analysts are saying astir the abrupt bullish reversal successful Bitcoin terms and what crypto traders tin expect moving guardant during this clip of accrued planetary tensions.

A revisit to $34,000 is “not retired of the question”

Prior to Tuesday’s terms surge, BTC sellers were firmly successful power of the marketplace according to a study from Delphi Digital, which posted the pursuing illustration and noted that “in the aftermath of caller events that person unfolded, being cautious implicit the past 2 weeks has so proved to beryllium the close people of action.”

BTC/USD 6-hour chart. Source: Delphi Digital

According to Delphi Digital, the large little enactment level to support an oculus connected is $34,000 based connected the magnitude of enactment seen determination backmost successful January erstwhile a hawkish Fed caused markets to tumble “before staging an awesome rally.”

Delphi Digital said,

“Since then, terms has failed to prolong momentum and returned to this $34,000 portion arsenic Russia announced its penetration of Ukraine. Price has since bounced to $38,000 astatine the clip of writing, but a revisit of the $34,000 enactment level is surely not retired of the question conscionable yet.”

Hodlers are hopeful

A much bullish projection was offered by on-chain investigation steadfast Glassnode, which noted that “despite a 50%+ correction” since the highs successful November, a bulk of the buyers that had entered the marketplace passim the August to November rally “have not liquidated their positions.”

Bitcoin URPD connected Feb. 27. Source: Glassnode

According to Glassnode’s investigation of the URPD metric, which shows the organisation of coin proviso astatine the terms it past moved on-chain, “the superior redistribution appears to beryllium coming from investors who bought the $60,000+ range” and person precocious been selling successful the $35,000 to $38,000 terms range.

Glassnode said,

“This spending behaviour describes a marketplace dominated by terms insensitive HODLers, who look unwilling to liquidate their coins, adjacent if held astatine a loss. Meanwhile, apical buyers person been importantly fleshed out, and correspond a acold smaller proportionality of the capitalist cohort erstwhile compared to May-July 2021.”

Related: 3 reasons wherefore Bitcoin terms rallied toward $45K entering March

Is Bitcoin's reversal official?

A last spot of penetration with a bullish bent was offered by options trader and pseudonymous Twitter idiosyncratic John Wick, who posted the pursuing illustration noting that “you tin spot we person a wide treble bottommost with a bully motion of strength.”

BTC/USD 1-week chart. Source: Twitter

John Wick said,

“We besides person a confirmed reversal. Stops should ever beryllium acceptable nether the signals wick. I would beryllium amazed if this setup takes america implicit $60,000.”

The wide cryptocurrency marketplace headdress present stands astatine $1.93 trillion and Bitcoin’s dominance complaint is 43.2%.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.