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Bitcoin has reclaimed $62,000 just a few days after “Crypto Black Monday,” with traders pointing to a bullish pattern on the seven-day price chart, which signals Bitcoin may have hit its floor.
“Bitcoin is seeing a massive green weekly candle with a huge wick,” crypto trader Matthew Hyland said in an Aug. 8 analysis <a href="https://x.com/MatthewHyland_/status/1821680720764698694" target="_blank" rel="noopener nofollow">video</a> as Bitcoin crossed $61,000.
“This is currently forming into a massive bull hammer on the weekly time frame,” he said, adding it is highly probable that the bottom is “now in for Bitcoin for this whole structure.”
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/729db432-b382-489f-b49a-08d3fcd5e8b4.png" alt="Bitcoin reclaims $62K, forming a ‘massive bull hammer’ on price chart" title="">
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 Bitcoin is up 7.12% over the past 30 days. Source: CoinMarketCap
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On Aug. 8, Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) briefly touched $62,510 before pulling back to $61,068 at the time of publication. <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noopener nofollow">According</a> to CoinMarketCap data, the asset is up 12.46% from Aug. 7.
The quick rebound comes just days after Bitcoin fell below a key support level to $49,751 on Aug. 5, which is being called “Crypto Black Monday.” It was its first drop below $50,000 since February.
Some traders think the quick reversal suggests that the recent price dip might have been a bear trap — when experienced traders sell Bitcoin in a controlled manner to temporarily lower the asset’s price to trap short-sellers.
“What an insane weekly. Probably the most epic bear trap I’ve ever seen,” pseudonymous crypto trader Byzantine General wrote in an X <a href="https://x.com/ByzGeneral/status/1821675615717671371" target="_blank" rel="noopener nofollow">post</a>.
The sentiment among future traders has flipped accordingly and is now heavily skewed toward long positions. According to CoinGlass <a href="https://www.coinglass.com/pro/dashboard/bitcoin" target="_blank" rel="noopener nofollow">data</a>, there are 52.48% in long positions compared to 47.52% in short positions.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/aa00c663-666a-4f98-817c-b0b3d67527a1.png" alt="Bitcoin reclaims $62K, forming a ‘massive bull hammer’ on price chart" title="">
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 A significant amount of leveraged long positions are at risk if Bitcoin breaks the $60,000 crucial level again. Source: CoinGlass
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It comes only a day after Morgan Stanley, the largest wealth manager in the United States, <a href="https://cointelegraph.com/news/morgan-stanley-advisers-officially-pitch-bitcoin-etfs">authorized its 15,000 financial advisers</a> to start recommending spot Bitcoin exchange-traded funds to clients.
Related: <a href="https://cointelegraph.com/news/bitcoin-decline-similar-2016-bull-run-peter-brandt">Bitcoin decline is similar to the start of the 2016 bull run — Peter Brandt</a>
However, not all crypto analysts believe the bottom is in yet. Some think there could be further downside <a href="https://cointelegraph.com/news/bitcoin-40k-price-bull-market-entry-10xresearch-crypto-traders">before Bitcoin hits new all-time highs</a>.
On Aug. 7, 10x Research head of Research Markus Thielen stated that “to ideally time the next bull market entry, we aim for Bitcoin prices to fall into the low 40,000s.”
On Aug. 5, Cane Island Alternative Advisors founder Timothy Peterson claimed that “$40k and $80k equally likely in the next 60 days.”
Magazine: <a href="https://cointelegraph.com/magazine/5-ways-crypto-bots-are-ruining-crypto-including-auto-memecoin-rug-pulls/">How crypto bots are ruining crypto — including auto memecoin rug pulls</a>
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.

Bitcoin reclaims $62K, forming a ‘massive bull hammer’ on price chart

Cointelegraph

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