Is the Bitcoin price heading for 30,000 dollars? The price of Bitcoin has been on a bearish recovery since August 15. This follows a bullish episode, weekly, during which the value of BTC jumped from $17,534 (June 17) to $25,221 two weeks ago. If the evolution of the price of cryptocurrency seems uncertain, the drawing of a double-bottom figure seems to send a most promising signal.
A market dominated by fear?
In the current context of the general depreciation of crypto-asset values, the bullish reversal scenario may be subject to doubts. Bitcoin was particularly badly hit by the statement of the President of the American Federal Reserve, Jerome Powell, addressed to Jackson Hole last week.
During this, the institution's hawkish position was maintained in the context of the fight against inflation. Immediately, the price of BTC was sucked down all the way to $20,000.
Since then, sentiment in crypto markets is estimated to have shifted towards fear according to the Fear and Greed Index. This evaluates the relationship of investors with Bitcoin as well as the overvaluation or undervaluation of its price at a given moment.
For this, seven indicators are integrated such as trading volume, market volatility, dominance, or interest measured on social networks.
Nevertheless, some observers believe that the reluctance of investors remains lower than that experienced last June. At the time, many positions had been forcibly closed, in particular as a result of the liquidity shortcomings encountered by the company Three Arrows Capital, a collateral victim of the collapse of the Terra USD (UST).
The Fear and Greed Index is currently rated at 23 out of 100. The higher this is, the greater the demand and appeal for BTC are considered to be. Last June, this value had dropped to 6, truly indicating a feeling of panic in the markets.
On the other hand, data from the latest Glassnode report indicates that there has been no loss of conviction from HODLers and that the recent drop in the price of Bitcoin has only had a moderate psychological impact.
A double-bottom now crystallizes hopes
Since August 28, a figure seems to give hope to investors. A double-bottom is indeed observable on the 4-hour Bitcoin chart. This is often a harbinger of an imminent bullish reversal. Taking the form of a "W", this figure is characterized by two successive low points before leading to an ascending curve as illustrated in the figure below.
Therefore, some analysts believe that the price of BTC could rise by 50% in September to reach $30,000. It is interesting to observe that a double-bottom is also emerging weekly. Its peak was reached on August 15 at nearly $25,500. As a result, the scenario of a bullish recovery seems all the more likely. If this occurs, the $29,800 level should offer some resistance. This will therefore be the next level to watch.
Towards the end of the bear market?
The evolution of the Bitcoin chart seems to bode very well for investors. Moreover, despite the acute crisis of confidence experienced during this bear market, a growing number of investors are holding on.
Let's add that the double-bottom figures are among those whose outcome is the least uncertain. It is estimated that its failure rate would be around 21%. While September may bring back bad memories for investors, it looks like the upcoming month will be kind to BTC.
Also, the purchase price that gathers the most Whales, holding between 1,000 and 10,000 BTC, is around $20,000. Therefore, the scenario of massive withdrawals below this level seems very unlikely.
Despite the prospect of this bullish rally for Bitcoin, it would be clumsy to sound the death knell for the bear market. However, this potential rally will come as investor confidence hit rock bottom two months ago. Therefore, it confirms, once again, the incredible resilience of Bitcoin and attests to the inevitable support of a growing number of investors.
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