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

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Bitcoin (BTC) rallied above $41,000 on Feb. 28 in a original signal of buying sentiment returning after final week’s brutal selloff across the risk-on markets, including the S&P 500.

BTC’s trace jumped by over 9% to prevail in $41,300, in fragment, as traders reacted to the continuing construction within the Russia-Ukraine disaster. In doing so, the cryptocurrency briefly broke its correlation with the U.S. inventory market indexes to carry out extra cherish obedient-haven gold, whose trace additionally went elevated in early buying and selling on Feb. 28.

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

Bitcoin downtrend hard — analyst

Johal Miles, an neutral market analyst, noticed “foremost buying rigidity” available within the market, including that its downtrend will doubtless be heading in direction of exhaustion.

Miles highlighted Bitcoin’s recent upside retracement moves upon discovering out ranges shut to $34,000 as crimson meat up. As an example, on Jan. 24 and Feb. 24, BTC’s trace fashioned a bullish hammer candlestick on its day to day chart, hinting at a U-turn for the length of a longtime downtrend.

BTC/USD day to day trace chart. Source: Johal Miles, TradingView

The an analogous bullish hammers looked final 300 and sixty five days in Can also simply and June, with their bottoms sitting below the foremost crimson meat up stage of $30,000. This used to be adopted up with a pointy trace reversal within the Bitcoin market with BTC’s trace reaching as excessive as $69,000 in November 2021.

Additionally, Miles mighty that the buying sentiment within the placement between $28,500 and $34,200 got here to be comparatively elevated than around $46,000, a crimson meat up Bitcoin broke to the recoil in January 2022.

“The important thing difference between the sizzling differ and the differ we had beforehand at $46 thousand is we’re actually seeing foremost buying rigidity when we search advice from the lows,” the analyst tweeted Feb. 28, including:

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

Making an strive for rigidity at the lows on equities. Bottom forming a clear probability.

Acceleration out of here possible we can even additionally sweep the lows as soon as extra but search info from traders to step in again.

Luminous cash buying, stupid cash selling.$BTC pic.twitter.com/eNSibdZkfd

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

BTC to $64Okay?

Alexander Tkachenko, CEO and founder, VNX — a Luxembourg-based token issuance platform, highlighted Bitcoin’s doable to rebound sharply following a confirmed U.S. inventory market bottom, including that its trace can even attain $64,000 in line with Wycoff methodology.

BTC/USD day to day trace chart that contains Wycoff mannequin. Source: TradingView

“From a worldwide standpoint, all indicators are that Bitcoin has entered the re-accumulation stage per Wycoff’s methodology,” he suggested Cointelegraph, including:

“One can search info from a pass in direction of USD64,000 and a extra upward model mid-time length. The functionality increase within the trace of Bitcoin is drawing shut as projected, particularly drawing on the coin’s shut ties to mainstream or the feeble inventory market, the S&P Index.”

Macro analysts additionally mighty that the benchmark S&P 500 could perhaps contain started bottoming out after staging a ancient reversal on Feb. 24. In detail, the index rebounded by nearly 4.5% despite being first and significant down by extra than 2.5%. Such a retracement has no longer took place for the reason that 2008 monetary disaster.

PC Oscillator has now chanced on a native bottom at the crimson meat up of February 2020, that could perhaps stamp at a continuation of the native rebound. The quiz is that if the rebound continues, will #Bitcoin educate it or no longer? Correlation says YES, but it could perhaps even simply be OTHERWISE!$SPX $BTC #btc #crypto pic.twitter.com/zB9crBCXhg

— barovirtual.io (@BaroVirtual) February 27, 2022

Chris Murphy, co-head of derivatives approach at Susquehanna World Neighborhood, said fascinating inventory market reversals for the length of a trace correction are “indicative of a traditional secure market rally,” aside from when the economic system has no longer been undergoing a fraction of recession.

“Historical precedence says we’re [near the lows of the ongoing correction] if we avoid a recession,” he suggested Industrial Insider while highlighting the bettering U.S. economic info, ranging from a valid user stability sheet to file-excessive company earnings to a strengthening labor market.

SPX day to day trace chart ft. MACD indicator. Source: TradingView

The views lined up with what FS Perception predicted in its recent S&P 500 market diagnosis. Co-based by JPMorgan’s dilapidated fairness strategist Tom Lee, the firm mighty that the index showed indicators of bottoming out.

Connected: Hodl, don’t change, says the AI Bitcoin buying and selling bot

“Costs remain below prior days’ highs amidst a adversarial model with bearish momentum,” said Set Newton, FS’s head of technical approach, in a demonstrate, including:

“I prefer being prolonged and buying dips, looking forward to that markets work elevated into March FOMC and that Boost outperforms Fee.”

Classic Bollinger Band W bottom on the weekly $SPX chart.https://t.co/FHEInV5pwE

— John Bollinger (@bbands) February 25, 2022

The correlation between Bitcoin and S&P 500 used to be 0.36 above zero as of Feb. 28, 4: 30 pm UTC.

The views and opinions expressed listed below are fully those of the creator and set no longer basically have confidence the views of Cointelegraph.com. Every investment and buying and selling pass involves risk, you ought to aloof behavior your like research when making a decision.