Bitcoin rebounds over $41K after painting a 'bullish hammer' — Can BTC hit $64K next?

2 years ago

Bitcoin (BTC) rallied supra $41,000 connected Feb. 28 successful a caller motion of buying sentiment returning aft past week's brutal selloff crossed the risk-on markets, including the S&P 500.

BTC's terms jumped by implicit 9% to scope $41,300 successful portion arsenic traders reacted to the ongoing improvement successful the Russia-Ukraine crisis. In doing so, the cryptocurrency concisely broke its correlation with the U.S. banal marketplace indexes to execute much similar safe-haven gold, whose terms besides went higher successful aboriginal trading Monday.

Bitcoin downtrend exhausting — analyst

Johal Miles, an autarkic marketplace analyst, spotted "significant buying pressure" successful the market, adding that its downtrend mightiness beryllium heading towards exhaustion.

Miles highlighted Bitcoin's caller upside retracement moves upon investigating levels adjacent $34,000 arsenic support. For instance, connected Jan. 24 and Feb. 24, BTC's terms formed a bullish hammer candlestick connected its regular chart, hinting astatine a U-turn during an established downtrend.

The aforesaid bullish hammers appeared past twelvemonth successful May and June, with their bottoms sitting beneath the cardinal enactment level of $30,000. This was followed up with a crisp terms reversal successful the Bitcoin marketplace with BTC's terms reaching arsenic precocious arsenic $69,000 successful November 2021.

Additionally, Miles noted that the buying sentiment successful the country betwixt $28,500 and $34,200 came to beryllium comparatively higher than astir $46,000, a enactment Bitcoin broke to the downside successful January 2022.

"The cardinal quality betwixt the existent scope and the scope we had antecedently astatine 46k is we are present seeing important buying unit erstwhile we sojourn the lows," the expert tweeted Monday, adding:

The spells exhaustion of the downtrend to me, akin to summer.

Buying unit astatine the lows connected equities. Bottom forming a wide possibility.

Acceleration retired of present imaginable we could besides expanse the lows erstwhile much but expect buyers to measurement successful again.

Smart wealth buying, dumb wealth selling.$BTC pic.twitter.com/eNSibdZkfd

— Miles J Creative (@JohalMiles) February 28, 2022

BTC to $64K?

Alexander Tkachenko, CEO and Founder, VNX — a Luxembourg-based token issuance platform, highlighted Bitcoin's imaginable to rebound sharply pursuing a confirmed U.S. banal marketplace bottom, adding that its terms could scope $64,000 based connected Wycoff methodology.

"From a planetary perspective, each signs are that Bitcoin has entered the re-accumulation signifier according to Wycoff's methodology," helium told Cointelegraph, adding:

"One tin expect a determination towards USD64,000 and a further upward inclination mid-term. The imaginable maturation successful the terms of Bitcoin is imminent arsenic projected, peculiarly drafting connected the coin's adjacent ties to mainstream oregon the accepted banal market, the S&P Index."

Macro analysts besides noted that the benchmark S&P 500 mightiness person started bottoming retired aft staging a humanities reversal connected Feb. 24. In detail, the scale rebounded by astir 4.5% contempt being initially down by much than 2.5%. Such a retracement has not happened since the 2008 fiscal crisis.

PC Oscillator has present recovered a section bottommost astatine the enactment of February 2020, which whitethorn hint astatine a continuation of the section rebound. The question is if the rebound continues, volition #Bitcoin travel it oregon not? Correlation says YES, but it whitethorn beryllium OTHERWISE!$SPX $BTC #btc #crypto pic.twitter.com/zB9crBCXhg

— barovirtual.io (@BaroVirtual) February 27, 2022

Chris Murphy, co-head of derivatives strategy at Susquehanna International Group, said crisp banal marketplace reversals during a terms correction are "indicative of a classical carnivore marketplace rally," but erstwhile the system has not been undergoing a signifier of recession.

"Historical precedence says we are [near the lows of the ongoing correction] if we debar a recession," helium told Business Insider portion highlighting the improving U.S. economical data, ranging from a beardown user equilibrium expanse to record-high firm net to a strengthening labour market.

The views lined up with what FS Insight predicted successful its caller S&P 500 marketplace analysis. Co-founded by JPMorgan's erstwhile equity strategist Tom Lee, the steadfast noted that the scale showed signs of bottoming out.

"Prices stay nether anterior days' highs amidst a antagonistic inclination with bearish momentum," said Mark Newton, FS's caput of method strategy, successful a note, adding:

"I favour being agelong and buying dips, anticipating that markets enactment higher into March FOMC and that Growth outperforms Value."

Classic Bollinger Band W bottommost connected the play $SPX chart.https://t.co/FHEInV5pwE

— John Bollinger (@bbands) February 25, 2022

The correlation betwixt Bitcoin and S&P 500 was 0.36 supra zero arsenic of Feb. 28, 16:30, UTC.

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.

View source