The Bitcoin (BTC) price has been on a V-shaped recovery on a daily basis after hitting lows below $50,000 in recent months, and analysts believe that if this trend continues, BTC will hit new all-time highs.
“Bitcoin has had a V-shaped recovery, and this correction and crash, which was triggered by the sell-off of crypto assets on Jump Trading, is similar to a COVID-19 –> Black Swan,” MN Capital founder Michaël van de Poppe wrote in an August 9 post on X.
In his previous X post on August 5, Van de Poppe mentioned the possibility of Bitcoin crashing to $49,577, which would mean Bitcoin bottoming out before making a V-shaped recovery to pre-crash levels.
A V-shaped recovery is a bullish pattern that forms when an asset experiences a sharp decline followed by a sharp rise in price. It is completed when the price rises to the neckline, the resistance line at the top of the V-shaped pattern.
Bitcoin appears to be following a similar trajectory, currently trading within the pattern’s range at $60,431, 15% off the pattern’s neckline.
The analyst explained that Bitcoin bulls need to defend the $57,500 support level to secure a recovery.
“As long as Bitcoin holds above $57,500, I think there will be a new ATH in September/October.”
However, not all cryptocurrency analysts share the same opinion. Some believe that Bitcoin is likely to fall further before reaching a new all-time high.
In an August 9 post on X, analyst Peter Brandt said there is a “50% chance that BTC will drop below $40,000 before the end of the halving.”
According to data from Cointelegraph Markets Pro and TradingView, BTC briefly reached a key resistance level at $62,719, after the 50-day and 100-day exponential moving averages (EMAs) converged on August 9, which led to a decline to $60,431 at the time of publication.
As previously reported by Cointelegraph, Bitcoin had to turn this barrier into support to avoid falling prey to the upcoming death cross.
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The $62,000 supplier congestion has become a major obstacle for Bitcoin price resistance, as evidenced by data from IntoTheBlock. The price-period in/out-of-the-money (IOMAP) model shows that Bitcoin is facing relatively strong resistance on its recovery path compared to the support it has enjoyed in the downtrend.
The $62,900 barrier is within the price range of $62,785 and $63,598, where around 763,800 BTC were previously bought by around 1.64 million addresses.
Additional data from CoinGlass shows that there is a huge sell order buildup around this level, which again highlights the importance of this level in a bear market.
The liquidation heatmap above shows that there are about $46.63 million worth of sell orders between the spot price and $62,000, further reinforcing the robustness of the upside resistance.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.