Bitcoin’s V-Shaped Recovery Could Put BTC On Track To New All-Time High – Analysts
Bitcoin (BTC) price has seen a V-shaped recovery from a multi-month daily low below $50,000, with analysts believing that continued growth could see BTC reach new all-time highs.
MN Capital founder Michael van de Pop said on August 9 that “Bitcoin has staged a V-shaped recovery, with this correction and the crash due to the sell-off of jump trading crypto assets being compared to COVID-19 — a Black Swan. Stick on the X.
In an earlier X post on August 5th, Van de Pop recently entertained the possibility of a crash to $49,577, the bottom for Bitcoin before a V-shaped recovery back to pre-crash levels.
A V-shaped retracement is a bullish pattern that occurs when an asset experiences a significant price increase after a severe downturn. The price ends when it moves to resistance at the top of the V formation referred to as the neckline.
Bitcoin seems to be heading in the same direction. It is currently trading at $60,431, 15% away from the pattern's neckline.
The analyst explained that Bitcoin bulls need to defend the support at $57,500 to confirm the recovery.
“As long as Bitcoin holds above $57,500, I think we'll be in for a new ATH in September/October.”
However, not all crypto analysts are of the same opinion. Some believe that there could be further decline before Bitcoin hits new all-time highs.
“There is a 50% chance that BTC will visit below $40k before the end of the last half,” said analyst Peter Brandt in an August 9 X post.
Data from Cointelegraph Markets Pro and TradingView show that BTC briefly touched major resistance at $62,719, where the 50-day and 100-day exponential moving averages (EMAs) converge on August 9, before returning to $60,431 at the time of publication. .
As previously reported by Cointelegraph, Bitcoin had to flip this barrier to support to avoid falling into the effects of the impending death cross.
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A supply glut has hit key Bitcoin price resistance at $62,000, data from IntoTheBlock confirms. An in-the-money move around the price (IOMAP) shows that Bitcoin will face relatively strong resistance on its recovery path compared to support on the downside.
The barrier at $62,900 is in the price range of $62,785 and $63,598, with approximately 763,800 BTC previously purchased by approximately 1.64 million addresses.
Additional data from CoinGlass shows massive ask orders building around this level, reinforcing the level's importance to bears.
The liquid heat map above shows that bid orders for $46.63 million sit between the spot price and $62,000, adding resistance to the upside.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
