Originally published on: August 09, 2024
Bitcoin has surged past the $62,000 mark just days after the infamous “Crypto Black Monday,” signaling a bullish trend on the price chart that suggests the digital asset has reached a new low before heading upwards.
Traders are buzzing about a significant pattern on the seven-day price chart, with many pointing to a massive green candlestick with a long wick forming a bull hammer pattern. Analysts like Matthew Hyland are optimistic about Bitcoin’s future, with many believing that the recent drop below $50,000 was a bear trap designed to trap short-sellers.
On August 8, Bitcoin briefly touched $62,510 before settling at $61,068, marking a 12.46% increase from the previous day. This swift recovery follows the recent dip below $50,000 on August 5, which was dubbed “Crypto Black Monday” as Bitcoin fell to its lowest point since February.
While some traders anticipate further downside before Bitcoin reaches new all-time highs, the sentiment among futures traders has shifted towards long positions, indicating a bullish outlook. Additionally, major financial institutions like Morgan Stanley have started recommending spot Bitcoin exchange-traded funds to clients, further boosting confidence in the digital currency.
Despite differing opinions among analysts, one thing is clear – Bitcoin’s volatile nature requires careful research and analysis before making any investment decisions. Stay informed and watch for opportunities to capitalize on the ever-changing crypto market landscape.