Bitcoin rebounds over $41K after painting a ‘bullish hammer’ — Can BTC hit $64K subsequent?

Bitcoin (BTC) rallied above $41,000 on Feb. 28 in a recent brand of shopping for sentiment returning after final week’s brutal selloff all over the risk-on markets, collectively with the S&P 500.

BTC’s imprint jumped by over 9% to set aside $41,300 in section as traders reacted to the continuing trend in the Russia-Ukraine crisis. In doing so, the cryptocurrency temporarily broke its correlation with the U.S. stock market indexes to occupy extra love kindly-haven gold, whose imprint also went higher in early trading Monday.

BTC/USD versus XAUUSD and S&P 500 each day imprint chart. Source: TradingView

Bitcoin downtrend exhausting — analyst

Johal Miles, an goal market analyst, spotted “valuable shopping for tension” available in the market, adding that its downtrend will seemingly be heading towards exhaustion.

Miles highlighted Bitcoin’s recent upside retracement strikes upon checking out ranges near $34,000 as make stronger. To illustrate, on Jan. 24 and Feb. 24, BTC’s imprint shaped a bullish hammer candlestick on its each day chart, hinting at a U-turn at some stage in an established downtrend.

BTC/USD each day imprint chart. Source: Johal Miles, TradingView

The the same bullish hammers seemed final one year in May perchance almost definitely per chance also simply and June, with their bottoms sitting beneath the most necessary make stronger level of $30,000. This became as soon as adopted up with a keen imprint reversal in the Bitcoin market with BTC’s imprint reaching as excessive as $69,000 in November 2021.

Moreover, Miles valuable that the shopping for sentiment in the set aside of living between $28,500 and $34,200 got here to be comparatively higher than round $46,000, a make stronger Bitcoin broke to the scheme back in January 2022.

“The key distinction between the recent vary and the vary we had previously at 46k is we are now seeing valuable shopping for tension when we focus on to the lows,” the analyst tweeted Monday, adding:

The spells exhaustion of the downtrend to me, equivalent to summer season.

Shopping tension at the lows on equities. Backside forming a definite possibility.

Acceleration out of here conceivable we can also sweep the lows as soon as extra but inquire of traders to step in again.

Tidy money shopping for, slow money promoting.$BTC

— Miles J Inventive (@JohalMiles) February 28, 2022

BTC to $64K?

Alexander Tkachenko, CEO and Founder, VNX — a Luxembourg-essentially essentially based token issuance platform, highlighted Bitcoin’s likely to rebound sharply following a confirmed U.S. stock market backside, adding that its imprint can also attain $64,000 in line with Wycoff methodology.

BTC/USD each day imprint chart that contains Wycoff model. Source: TradingView

“From a international perspective, all indicators are that Bitcoin has entered the re-accumulation stage per Wycoff’s methodology,” he told Cointelegraph, adding:

“One can inquire of a pass towards USD64,000 and an additional upward trend mid-time interval. The likely enhance in the imprint of Bitcoin is forthcoming as projected, particularly drawing on the coin’s shut ties to mainstream or the aged stock market, the S&P Index.”

Macro analysts also valuable that the benchmark S&P 500 can also wish started bottoming out after staging a historical reversal on Feb. 24. In component, the index rebounded by with regards to 4.5% despite being in the starting set aside down by better than 2.5%. This kind of retracement has no longer befell since the 2008 financial crisis.

PC Oscillator has now stumbled on a neighborhood backside at the make stronger of February 2020, that can even hint at a continuation of the local rebound. The inquire of is if the rebound continues, will #Bitcoin apply it or no longer? Correlation says YES, but it completely is also OTHERWISE!$SPX $BTC #btc #crypto

— (@BaroVirtual) February 27, 2022

Chris Murphy, co-head of derivatives strategy at Susquehanna Worldwide Crew, acknowledged keen stock market reversals at some stage in a imprint correction are “indicative of a classic endure market rally,” excluding when the economy has no longer been undergoing a section of recession.

“Historical precedence says we are [near the lows of the ongoing correction] if we steer clear of a recession,” he told Enterprise Insider while highlighting the enhancing U.S. economic records, starting from a stable user steadiness sheet to fable-excessive corporate earnings to a strengthening labor market.

SPX each day imprint chart ft. MACD indicator. Source: TradingView

The views lined up with what FS Insight predicted in its recent S&P 500 market diagnosis. Co-founded by JPMorgan’s aged equity strategist Tom Lee, the firm valuable that the index showed indicators of bottoming out.

Related: Hodl, don’t alternate, says the AI Bitcoin trading bot

“Prices remain below prior days’ highs amidst a adversarial trend with bearish momentum,” acknowledged Stamp Newton, FS’s head of technical strategy, in a advise, adding:

“I settle on being lengthy and shopping for dips, looking ahead to that markets work higher into March FOMC and that Increase outperforms Payment.”

Traditional Bollinger Band W backside on the weekly $SPX chart.

— John Bollinger (@bbands) February 25, 2022

The correlation between Bitcoin and S&P 500 became as soon as 0.36 above zero as of Feb. 28, 16: 30, UTC.

The views and opinions expressed listed below are fully these of the creator and attain no longer essentially replicate the views of Every funding and trading pass entails risk, you almost definitely can also silent behavior your occupy assessment when making a resolution.