Bitcoin has surged back to $62,000 just days after what’s been termed “Crypto Black Monday,” with traders noting a bullish trend on the weekly price chart that suggests Bitcoin may have reached its lowest point.
On August 8, crypto analyst Matthew Hyland highlighted in a video that Bitcoin was experiencing a significant green weekly candle with a substantial wick as it moved past $61,000. “This is forming into a substantial bull hammer on the weekly chart,” he noted, suggesting it’s quite likely that Bitcoin has bottomed out.
Bitcoin has risen 7.12% over the last month, according to CoinMarketCap. On August 8, it briefly peaked at $62,510 before retracting to $61,068. Data from CoinMarketCap shows a 12.46% increase since August 7.
This rebound follows Bitcoin’s drop below a major support level to $49,751 on August 5, a day now referred to as “Crypto Black Monday” due to its first dip below $50,000 since February. Some traders speculate this swift recovery might have been a bear trap, where seasoned traders temporarily lower the price to trap those betting against it.
Pseudonymous trader Byzantine General described the situation as “probably the most epic bear trap I’ve ever seen” in a recent X post. Futures traders’ sentiment has shifted significantly towards long positions, with CoinGlass reporting 52.48% in longs versus 47.52% in shorts.
Additionally, the day after this rebound, Morgan Stanley, the largest wealth manager in the U.S., authorized its 15,000 financial advisers to recommend Bitcoin exchange-traded funds (ETFs) to clients.
Yet, not all analysts are convinced that Bitcoin has reached its ultimate bottom. Markus Thielen from 10x Research suggested on August 7 that Bitcoin might need to fall to the low $40,000s to optimally time the next bull market. Similarly, Timothy Peterson of Cane Island Alternative Advisors predicted on August 5 that Bitcoin could see prices between $40,000 and $80,000 in the next two months.
This article does not offer investment advice. Every investment carries risk, and readers should conduct their own research before making financial decisions.