Bitcoin has surged back to $62,000 just days after what has been dubbed “Crypto Black Monday.” Traders are observing a bullish trend on the seven-day price chart, suggesting that Bitcoin may have found its bottom.
“Bitcoin is currently displaying a substantial green weekly candle with a significant wick,” crypto trader Matthew Hyland noted in an analysis video on August 8, as Bitcoin surpassed $61,000. “This is shaping up to be a massive bull hammer on the weekly timeframe,” he added, indicating a strong likelihood that Bitcoin’s bottom is “now established for this entire structure.”
Over the past 30 days, Bitcoin has seen a 7.12% increase. Source: CoinMarketCap.
On August 8, Bitcoin (BTC) momentarily reached $62,510 before retreating to $61,068 at the time of this publication. Data from CoinMarketCap reveals that the asset has risen by 12.46% since August 7.
This swift recovery follows a significant drop below a crucial support level, with Bitcoin plummeting to $49,751 on August 5, a day now referred to as “Crypto Black Monday.” This marked its first fall below the $50,000 threshold since February.
Some traders speculate that this rapid turnaround signifies that the recent price decline was a bear trap—an occurrence where seasoned traders sell Bitcoin in a controlled fashion to artificially depress the asset’s price, thereby ensnaring short-sellers.
“What an unbelievable week. This is probably the most impressive bear trap I’ve ever witnessed,” commented the pseudonymous crypto trader Byzantine General in a post on X.
The sentiment among futures traders has shifted dramatically, now leaning heavily towards long positions. As per CoinGlass data, long positions account for 52.48%, while short positions stand at 47.52%.
A considerable number of leveraged long positions could be jeopardized if Bitcoin once again breaks below the critical $60,000 mark. Source: CoinGlass.
This surge comes just a day after Morgan Stanley, the leading wealth management firm in the United States, gave the green light to its 15,000 financial advisers to start recommending Bitcoin exchange-traded funds (ETFs) to their clients.
Related: Bitcoin’s decline mirrors the onset of the 2016 bull run — Peter Brandt.
Nevertheless, not all cryptocurrency analysts are convinced that the bottom has been reached. Some believe there may be further declines before Bitcoin achieves new all-time highs.
On August 7, Markus Thielen, head of Research at 10x Research, suggested that “to optimally time the next entry into the bull market, we expect Bitcoin prices to dip into the low $40,000 range.”
On August 5, Timothy Peterson, founder of Cane Island Alternative Advisors, asserted that “both $40k and $80k are equally likely within the next 60 days.”
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This article does not offer investment advice or recommendations. Each investment and trading decision carries risk, and readers are encouraged to conduct their own research before making any choices.