The recent free fall of Bitcoin seems to have come to a halt, bringing relief to the market as fear begins to subside. With the Relative Strength Index (RSI) showing signs of improvement and other indicators signaling a potential recovery, the question on everyone’s mind is whether Bitcoin has truly started to bounce back or if this is just another trap waiting to happen.
The Bull Trap
The crypto community had been eagerly anticipating a bull rally towards the end of September, dubbing it “Up-tober”. However, this optimism proved to be a trap as Bitcoin crashed. This pattern of events repeating itself with each cycle is not new. Whether it was China banning Bitcoin mining or Russia engaging in conflict over Ukraine, such events always seemed to coincide with the community’s expectations for a bull run. This time was no different, leading to Bitcoin’s drop to $60,000. Despite this setback, Bitcoin appears to be showing signs of recovery.
The Pain on Charts
The past week has been a rollercoaster for Bitcoin traders, with the cryptocurrency currently trading at $61,527 – a 3.12% recovery from its recent low of $60,000. The daily chart is displaying a positive green candle, indicating a potential upward trend. Additionally, the hourly chart is forming a curve that could potentially signal the formation of a cup and handle pattern. If this pattern plays out, we may see a significant price increase in the coming week. While there are several resistance levels and obstacles in Bitcoin’s path, history has shown that when the time is right for a bullish move, nothing can stand in its way.
What to Expect?
It is almost certain that Bitcoin will surpass $72,000 in the near future. Historically, bull runs tend to kick off around October, offering the highest returns. Currently, Bitcoin is finding support at various levels and gradually climbing upwards. While some previous resistance levels may pose a challenge, they are unlikely to impede the upcoming bull run. Traders are advised to carefully analyze market sentiment before making any significant moves.
In conclusion, despite the recent turbulence in the cryptocurrency market, there is optimism for a potential recovery in Bitcoin. As long as market conditions remain favorable, we may see Bitcoin soar to new heights in the coming weeks.