Bitcoin has reclaimed the $62,000 level just a few days after the recent market dip, which some are calling "Crypto Black Monday." Traders are pointing to a bullish pattern on the seven-day price chart, suggesting that Bitcoin may have hit its bottom.The quick rebound comes after Bitcoin briefly touched $62,510 before pulling back to $61,068 at the time of publication, representing a 12.46% increase from Aug. 7. The sentiment among future traders has shifted towards long positions, with 52.48% in long positions compared to 47.52% in short positions.
The Bull Hammer Pattern
The formation of a "massive bull hammer" on the weekly time frame is a bullish signal that suggests the bottom may be in for Bitcoin. A bull hammer pattern is characterized by a long lower shadow and a small body, indicating that buyers have stepped in after a period of selling pressure.Some traders believe that the quick reversal suggests that the recent price dip might have been a bear trap, where experienced traders sell Bitcoin in a controlled manner to temporarily lower the asset's price to trap short-sellers.
Institutional Interest and Sentiment
The bullish sentiment is further reinforced by Morgan Stanley's decision to authorize its 15,000 financial advisers to start recommending Bitcoin exchange-traded funds (ETFs) to clients.However, not all crypto analysts are convinced that the bottom is in yet. Some believe there could be further downside before Bitcoin hits new all-time highs, with targets in the low $40,000s.
Despite the differing opinions, the formation of the bull hammer pattern and the quick rebound from the recent dip have sparked renewed optimism among traders. As always, investors are advised to conduct thorough research and consider market conditions before making investment decisions, as the cryptocurrency market remains highly volatile.
