Bitcoin price has been on a bearish recovery since August 15th. This follows a bullish episode, weekly, in which the value of BTC jumped from $17,534 (June 17) to $25,221 two weeks ago. If the evolution of the price of the cryptocurrency seems uncertain, the figure plot i double bottom It seems to send a most promising signal.
Most feared market?
In the current context of the general depreciation of crypto-asset values, the case for a bullish reversal may be in doubt. Bitcoin was hit particularly hard by the statement of the President of the American Federal Reserve, Jerome Powell, sent to Jackson Hole last week. During this time, the position hawk to maintain the institution in the context of the fight against inflation. Immediately, the price of BTC was pulled down all the way to $20,000.
Since then, the mood of the crypto markets is believed to be fading fear (fear) according to the Fear and Denial Index. This assesses the relationship of investors to Bitcoin as well as the overvaluation or undervaluation of its price at a given moment. To that end, seven indicators are integrated such as trading volume, market volatility, dominance or interest measured on social networks.
Some observers believe, however Investors’ reluctance is still lower than in June last. At the time, many jobs were forced to close, especially as a result of the liquidity deficits of the company Three Arrows Capital, a collateral victim of the collapse of the Terra USD (UST).
The Fear and Greed Index is currently rated at 23 out of 100. The higher this is, the more demand and appeal BTC is considered to be. Last June, this value fell to 6, which truly reflects a sense of panic in the markets. On the other hand, data from Glassnode’s latest report shows that there has been no loss of conviction among HODLers and that the recent fall in the price of Bitcoin has had only a modest psychological impact.
A double bottom crystallizes hope now
As of August 28, a figure seems to give investors hope. A double bottom it is indeed visible on the 4 hour Bitcoin chart. This is often the case due to an impending bullish reversal. Being in the form of a “W”, this figure is characterized by two consecutive low points before forming an ascending curve as shown in the figure below.
Therefore, some analysts believe that the price of BTC may take 50% in September until it reaches $30,000. It is interesting to note that a double bottom also takes shape i weekly. A peak was reached on August 15 at nearly $25,500. As a result, it looks like there will be a bullish recovery. If this happens, the $29,800 level should provide some resistance. This will therefore be the next level to watch.
Towards the end of the bear market?
The evolution of the Bitcoin chart seems to be very good for investors. In addition, despite the crisis of confidence that occurred during this time bear marketan increasing number of investors hold firm.
Let us add that the figures i double bottom among those with the least uncertain outcome. Its failure rate is estimated to be around 21%. While September may bring back bad memories for investors, the coming month seems to be kind to BTC.
Also, the purchase price that collects the most Whales, which have between 1,000 and 10,000 BTC, is around $20,000. Therefore, massive pullbacks below this level seem highly unlikely.
Despite the prospect of this bullish rally for Bitcoin, it would be clumsy to sound the death knell for the bear market. However, this potential rally will come as investor confidence took a hit two months ago. Therefore, he declares, once again, Bitcoin’s Unbelievable Resilience and attests to the inevitable support of a growing number of investors.