- Bitcoin’s bounce off $82K hints at a potential bull run.
- Analysts see strong support defense as key for Bitcoin reversal.
- Market sentiment shifts as Bitcoin surges, signaling early recovery signs.
Bitcoin’s recent rally, bouncing off support above $82,000 over the weekend, has ignited fresh hopes of a major bull run. As BTC’s price continues to climb, several analysts are now predicting that the cryptocurrency may be in the early stages of a significant price reversal.
Many have drawn comparisons between Bitcoin’s current price action and the consolidation phase before the 2021 crash, but with one crucial difference this time, the support has held strong.
Merlijn, a respected market analyst, highlighted the similarities between Bitcoin’s current market structure and the one seen before the 2021 bear market. However, he points out that the defense of support seen in recent days is a promising sign.
The key now is for Bitcoin to break through its current downward trendline. A successful breakout above this resistance could pave the way for a return to bullish market conditions, signaling a potential start of a new rally.
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Experts See Bitcoin’s Bounce as the Start of Something Bigger
Bitcoin’s bounce has sparked interest in the market, but some analysts are looking deeper into the data. Santiment’s analysis described the recovery as an “encouraging bounce back,” noting that many retail traders are still betting on a bearish outcome.
This overwhelming pessimism is, according to historical trends, a sign that Bitcoin might be nearing a significant reversal. Bitcoin has a history of turning around when negative sentiment peaks, often followed by price increases that force short-sellers to liquidate their positions.
Additionally, data from Glassnode suggests Bitcoin is in a critical position beneath short-term holders’ realized prices. To confirm a recovery, Bitcoin must move above these levels, solidifying its foundation for a sustained rally.
Bitcoin’s current rally, pushing the price to $87,725, represents a 9% gain from its latest pullback. All eyes are on whether Bitcoin can continue its upward trajectory and break through its immediate resistance, potentially signaling the start of a new bull market.
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