Bitcoin’s V-shaped recovery could put BTC on path to new all-time high — Analysts
2024.08.09 14:43
Bitcoin’s (BTC) price has displayed a V-shaped recovery on the daily timeframe from its recent multi-month low below $50,000, leading analysts to believe that a sustained uptrend would see BTC hit new all-time highs.
“Bitcoin did provide a V-Shape recovery, through which this correction and crash due to Jump Trading selling crypto assets is comparable to COVID-19 –> A Black Swan,” MN Capital founder Michaël van de Poppe said in an Aug. 9 post on X.
In an earlier X post on Aug. 5, van de Poppe entertained the possibility of the recent crash to $49,577, defining the bottom for Bitcoin before it embarked on a V-shaped recovery back to pre-crash levels.
A V-shaped recovery is a bullish pattern formed when an asset experiences a sharp price increase after a steep decline. It is completed when the price moves up to the resistance at the top of the V formation referred to as the neckline.
BTC/USD daily chart. Source: TradingView
Bitcoin appears to be on a similar trajectory. It’s currently trading within the confines of the pattern at $60,431, 15% away from the pattern’s neckline.
The analyst explained that Bitcoin bulls need to defend the support at $57,500 in order to secure the recovery.
“As long as Bitcoin holds above $57,500, I think we’re in for a new ATH in September/October.”
BTC/USD daily chart. Source: Michaël van de Poppe/X
However, not all crypto analysts are of the same opinion. Some believe there could be further downside before Bitcoin hits new all-time highs.
In an Aug. 9 X post, analyst Peter Brandt stated that “there is a 50% chance BTC visits sub-$40k before the last half of the halving plays itself out.”
Source: Peter Brandt
Data from Cointelegraph Markets Pro and TradingView shows that BTC briefly touched the major resistance at $62,719, where the 50-day and 100-day exponential moving averages (EMAs) appear to converge on Aug. 9 before pulling back to $60,431 at the time of publication.
As earlier reported by Cointelegraph, Bitcoin was required to flip this barrier into support to avoid falling into the effects of a looming death cross.
Related: Bitcoin whale games get traders nervous as 12K BTC appears for sale
Supplier congestion at $62,000 has become a key Bitcoin price resistance hurdle, as evidenced by data from IntoTheBlock. Its in/out of the money around price (IOMAP) model shows that Bitcoin faces relatively stiff resistance in its recovery path compared to the support it enjoys on the downside.
The barrier at $62,900 lies within the $62,785 and $63,598 price range, where approximately 763,800 BTC was previously bought by approximately 1.64 million addresses.
Bitcoin IOMAP chart. Source: IntoTheBlock
Additional data from CoinGlass reveals massive ask orders building up around this level, reinforcing the significance of this level to bears.
Bitcoin liquidation heatmap. Source: CoinGlass
The liquidation heat map above shows that there are around $46.63 million in ask orders sitting between the spot price and $62,000, adding to the stiffness of the resistance on the upside.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
