Bitcoin breaks through 62,000! Analyst: "Bullish lower shadow" appears

After experiencing "Black Monday", Bitcoin has rebounded rapidly in recent days. As of this morning (9th), it once rose to US$62,745. It is now back above US$61,000, with an intraday increase of 6.63%.

Will Bitcoin continue to rebound in the future? According to a report by currency circle foreign media "Cointelegraph", cryptocurrency analyst Matthew Hyland pointed out yesterday that judging from the weekly K-line trend, Bitcoin has appeared a quite long "bullish lower shadow", which means that the structure is likely to have reached a end.

一張含有 文字, 繪圖, 行, 字型 的圖片 自動產生的描述Image source: TradingView
Bitcoin’s weekly K-line has shown a rather long “bullish lower shadow”

Another anonymous trader, Byzantine General, said that the trend of Bitcoin this week is really crazy, and believes that an "epic bear trap (Bear Trap)" has occurred.

CoinGlass data also shows that the Bitcoin liquidation map of centralized exchanges shows that trader sentiment has become bullish, with the current bullish ratio at 52.48% and the bearish position ratio at 47.52%. If Bitcoin falls below the $60,000 mark again, a large number of longs (buy orders) will be at risk of liquidation.

一張含有 文字, 繪圖, 行, 螢幕擷取畫面 的圖片 自動產生的描述Image source: CoinGlass
Bitcoin exchange liquidation map

Where can Bitcoin go in the future?

If Bitcoin’s rally can continue, where will it likely go in the future? Analyst Kevin Svenson used Fibonacci retracement analysis and pointed out that several short-term target price and resistance levels for Bitcoin are:

  • Fibonacci 61.8% retracement level: $64,302

  • Fibonacci 78.6% retracement level: $68,435.6

  • Fibonacci 100% retracement level: $73,700 (i.e. all-time high)

  • Fibonacci 161.8% retracement level: $88,902.8

  • Fibonacci 261.8% retracement level: $113,502.8

一張含有 螢幕擷取畫面, 人員, 多媒體軟體, 繪圖軟體 的圖片 自動產生的描述 

If analyzed using a broadening pattern, he predicts that Bitcoin may challenge a new high of $96,000 after breaking through the resistance line (near $70,000).

Some analysts remain cautious

However, not all cryptocurrency analysts believe the bottom has been reached. Some analysts believe there could be further losses before Bitcoin reaches new highs.

On August 7, Markus Thielen, founder and analyst of 10x Research, said: "Ideally, our goal is for the price of Bitcoin to fall below $40,000 to become the best entry point to seize the subsequent bull market."

On August 5, Timothy Peterson, founder of Cane Island Alternative Advisors, claimed: "In the next 60 days, the possibility of returning to $40,000 is the same as rushing to $80,000" and hoped that Bitcoin would fall back to 50,000. Even $40,000 allows investors to expect greater opportunities for bargain-hunting profits.

[Disclaimer] There are risks in the market, so investment needs to be cautious. Analysts' opinions are for reference only. Users should refer to more diverse indicators to judge whether to invest, and consider whether any opinions, views or conclusions in this article are consistent with their specific circumstances. Invest accordingly and do so at your own risk.

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