HomeBitcoin UpdateBitcoin rebounds over $41K after portray a 'bullish hammer' — Can BTC...

Bitcoin rebounds over $41K after portray a ‘bullish hammer’ — Can BTC hit $64K subsequent?

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Bitcoin (BTC) rallied above $41,000 on Feb. 28 in a brand new signal of shopping for sentiment returning after final week’s brutal selloff throughout the risk-on markets, together with the S&P 500.

BTC’s worth jumped by over 9% to succeed in $41,300 partially as merchants reacted to the continuing improvement within the Russia-Ukraine disaster. In doing so, the cryptocurrency briefly broke its correlation with the U.S. inventory market indexes to carry out extra like safe-haven gold, whose worth additionally went greater in early buying and selling Monday.

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BTC/USD versus XAUUSD and S&P 500 day by day worth chart. Supply: TradingView

Bitcoin downtrend exhausting — analyst

Johal Miles, an unbiased market analyst, spotted “important shopping for strain” available in the market, including that its downtrend could be heading in direction of exhaustion.

Miles highlighted Bitcoin’s latest upside retracement strikes upon testing ranges close to $34,000 as assist. As an example, on Jan. 24 and Feb. 24, BTC’s worth fashioned a bullish hammer candlestick on its day by day chart, hinting at a U-turn throughout a longtime downtrend.

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BTC/USD day by day worth chart. Supply: Johal Miles, TradingView

The identical bullish hammers appeared final 12 months in Could and June, with their bottoms sitting beneath the important thing assist degree of $30,000. This was adopted up with a pointy worth reversal within the Bitcoin market with BTC’s price reaching as high as $69,000 in November 2021.

Moreover, Miles famous that the shopping for sentiment within the space between $28,500 and $34,200 got here to be comparatively greater than round $46,000, a assist Bitcoin broke to the draw back in January 2022.

“The important thing distinction between the present vary and the vary we had beforehand at 46k is we are actually seeing important shopping for strain after we go to the lows,” the analyst tweeted Monday, including:

The spells exhaustion of the downtrend to me, much like summer time.

BTC to $64K?

Alexander Tkachenko, CEO and Founder, VNX — a Luxembourg-based token issuance platform, highlighted Bitcoin’s potential to rebound sharply following a confirmed U.S. inventory market backside, including that its worth might attain $64,000 primarily based on Wycoff methodology.

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BTC/USD day by day worth chart that includes Wycoff mannequin. Supply: TradingView

“From a world perspective, all indicators are that Bitcoin has entered the re-accumulation stage based on Wycoff’s methodology,” he advised Cointelegraph, including:

“One can anticipate a transfer in direction of USD64,000 and an extra upward development mid-term. The potential progress within the worth of Bitcoin is imminent as projected, significantly drawing on the coin’s shut ties to mainstream or the standard inventory market, the S&P Index.”

Macro analysts additionally famous that the benchmark S&P 500 might need began bottoming out after staging a historic reversal on Feb. 24. Intimately, the index rebounded by almost 4.5% regardless of being initially down by greater than 2.5%. Such a retracement has not occurred because the 2008 monetary disaster.

Chris Murphy, co-head of derivatives technique at Susquehanna Worldwide Group, mentioned sharp inventory market reversals throughout a worth correction are “indicative of a basic bear market rally,” besides when the economic system has not been present process a section of recession.

“Historic priority says we’re [near the lows of the ongoing correction] if we keep away from a recession,” he told Business Insider whereas highlighting the enhancing U.S. financial knowledge, starting from a robust client steadiness sheet to record-high company earnings to a strengthening labor market.

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SPX day by day worth chart ft. MACD indicator. Supply: TradingView

The views lined up with what FS Perception predicted in its latest S&P 500 market evaluation. Co-founded by JPMorgan’s former fairness strategist Tom Lee, the agency famous that the index confirmed indicators of bottoming out.

Associated: Hodl, don’t trade, says the AI Bitcoin trading bot

“Costs stay below prior days’ highs amidst a damaging development with bearish momentum,” said Mark Newton, FS’s head of technical technique, in a be aware, including:

“I favor being lengthy and shopping for dips, anticipating that markets work greater into March FOMC and that Progress outperforms Worth.”

The correlation between Bitcoin and S&P 500 was 0.36 above zero as of Feb. 28, 16:30, UTC.

The views and opinions expressed listed here are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, you must conduct your individual analysis when making a call.