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

Bitcoin (BTC), which rose above $41,000 on February 28, is a sign that buying sentiment has returned after the brutal selloff in risk-on markets last week, including the S&P 500.

BTC saw a jump of over 9%, reaching $41,300 as traders responded to the Russia-Ukraine conflict. The cryptocurrency temporarily broke the correlation with U.S. stock indexes, making it more similar to safe-haven metal, which also saw its price rise in early trading on February 28.

BTC/USD versus XAUUSD & S&P 500 daily chart. Source: TradingView

Bitcoin downtrend exhausting — analyst

Independent market analyst Johal Miles noted “significant buying pressure” and suggested that the market’s downtrend could be ending.

Miles emphasized Bitcoin’s recent upside movement retracement movements upon testing levels close to $34,000 as support. BTC’s daily chart showed a bullish candlestick with a bullish hammer on January 24 and February 24, which suggests a U-turn in an established downtrend.

BTC/USD daily chart. Source: Johal Miles, TradingView

In May and June last year, the same bullish hammers were seen with their bottoms below the $30,000. The Bitcoin market saw a sharp price decline, with BTC reaching $69,000 in November 2021.

Miles also noted that buying sentiment was comparatively higher in the $28,500 to $34,200 area than in the $46,000 region, which is where Bitcoin’s support broke in January 2022.

“The main difference between the current range of $46 thousand and the range that we had previously at $46 000 is that we are now experiencing significant buying pressure when it comes to the lows,” said the analyst in a tweet Feb. 28.

To me, the spells exhaustion is similar to summer. The possibility of bottom formation is clear. We could accelerate out of here, but we expect buyers to step back. Smart money buying, dumb money selling.$BTC
Miles J Creative (@JohalMiles), February 28, 2022

BTC up to $64K

Alexander Tkachenko is the founder and CEO of VNX, a Luxembourg-based token issue platform. He also mentioned Bitcoin’s potential for a sharp rebound following a confirmed bottom in the U.S. stock markets. He added that Bitcoin’s price could reach $64,000 using Wycoff methodology.

BTC/USD daily chart with Wycoff model Source: TradingView

He told Cointelegraph that all indications point to Bitcoin entering the re-accumulation stage as per Wycoff’s method.

“One can expect a rise to USD64,000, and an additional upward trend in the mid-term. As projected, Bitcoin’s potential price growth is likely, especially considering its close ties with mainstream stock markets, such as the S&P Index.

Macro analysts noted that the benchmark S&P 500 may have reached its bottom after a historic reversal on February 24. The index recovered by almost 4.5%, despite initially falling by more than 2.5%. This has not been seen since 2008’s financial crisis.

PC Oscillator now has a local bottom at February 2020 support, which could indicate a continuation in the local rebound. If the rebound continues, #Bitcoin will follow it or not. Correlation says YES, but it may be OTHERWISE!$SPX $BTC #btc #crypto
—, February 27, 2022

Chris Murphy, Susquehanna’s co-head of the derivatives strategy, stated that sharp stock market reversals in price corrections are indicative of a classic bearish rally, except when the economy is not in a recession phase.

He said that historical precedent suggests we are [near to the lows of an ongoing correction] if there is to be a recession. He also highlighted the improving U.S. economy data, which includes a strong consumer balance and record-high corporate earnings as well as a strengthening labor force.

SPX daily price chart with MACD indicator Source: TradingView

These views were in line with the predictions of FS Insight’s recent S&P 500 market analysis. The firm was co-founded by Tom Lee, an ex-equity strategist at JPMorgan. It noted that the index had shown signs of bottoming.

Related: Hodl says don’t trade with the AI Bitcoin trading robot

“Prices remain below prior days’ highs amidst a positive trend with bearish momentum,” stated Mark Newton, FS head of technical strategy.

“I prefer to be long and buy dips, anticipating the markets will work higher into March FOMC. I also believe that Growth outperforms value. “Classic Bollinger Band W bottom on the weekly $SPX chart.
— John Bollinger (@bbands), February 25, 2022

As of February 28, 2016, at 4:30 UTC, the correlation between Bitcoin and S&P500 was 0.36 higher than zero.

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