Bitcoin rebounds over $41K after painting a 'bullish hammer' — Can BTC hit $64K next?
Bitcoin (BTC) rallied above $41,000 on Feb. 28 in a new sign of buying sentiment returning after last week's brutal selloff across the risk-on markets, including the S&P 500.
BTC's price jumped by over 9% to reach $41,300 in part as traders reacted to the ongoing development in the Russia-Ukraine crisis. In doing so, the cryptocurrency briefly broke its correlation with the U.S. stock market indexes to perform more like safe-haven gold, whose price also went higher in early trading Monday.
Johal Miles, an independent market analyst, spotted "significant buying pressure" in the market, adding that its downtrend might be heading towards exhaustion.
Miles highlighted Bitcoin's recent upside retracement moves upon testing levels near $34,000 as support. For instance, on Jan. 24 and Feb. 24, BTC's price formed a bullish hammer candlestick on its daily chart, hinting at a U-turn during an established downtrend.
The same bullish hammers appeared last year in May and June, with their bottoms sitting below the key support level of $30,000. This was followed up with a sharp price reversal in the Bitcoin market with BTC's price reaching as high as $69,000 in November 2021.
Additionally, Miles noted that the buying sentiment in the area between $28,500 and $34,200 came to be comparatively higher than around $46,000, a support Bitcoin broke to the downside in January 2022.
"The key difference between the current range and the range we had previously at 46k is we are now seeing significant buying pressure when we visit the lows," the analyst tweeted Monday, adding:
Buying pressure at the lows on equities. Bottom forming a clear possibility. Acceleration out of here possible we could also sweep the lows once more but expect buyers to step in
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