After being impacted by events in general global markets, Bitcoin (BTC) is posting signs of sustained price recovery following days of uncertainty regarding the asset’s future and the overall crypto sector.
Bitcoin’s ongoing rally that has hit new multi-month highs has led to experts suggesting that the cryptocurrency’s bull run is in play.
Indeed, Aurelien Ohayon, CEO of strategy services platform XOR in a tweet on March 14, pointed out that Bitcoin had formed the Wyckoff pattern, an indicator that the maiden cryptocurrency’s bull run has kicked off with a potential target of $1 million.
Bitcoin’s last bull run was experienced in late 2020 and early 2021 before fading in an extended bear market across last year as the asset was battered mainly by macroeconomic factors.
The Wyckoff pattern is based on an analysis by legendary trader Richard Wyckoff, which involves identifying patterns in price and volume data to predict future price movements. The cycle is divided into four key phases, including accumulation, markup, distribution, and markdown.
As per Ohayon’s analysis, the Bitcoin price movement has hit the markup level, characterized by pullbacks to new support levels that offer buying opportunities known as throwbacks. Corrections may also occur, which are steeper pullbacks.
The analysis complements a previous Finbold report highlighting that technical indicators suggest that the ongoing Bitcoin price recovery might point to an imminent rally.
Bitcoin price analysis
BTC had been trading sideways for several weeks, with little upward or downward movement. However, market fears over Silvergate Bank’s financial situation and the SEC’s regulation of crypto firms sparked a massive crash that brought Bitcoin’s value down below $20,000.
Since then, the situation has turned around, and BTC has made a notable recovery. As of today, Bitcoin is trading at $24,797, with daily gains exceeding 2%. Looking at the weekly chart, BTC has climbed over 12%, demonstrating an impressive turnaround from its recent crash.
Before the current Bitcoin levels, the digital currency briefly reclaimed the $26,000 position before retracing following the price surge.
Notably, Bitcoin has shrugged off the ‘FUD‘ (Fear, Uncertainty, and Doubt) that emanated from the chaos in the American banking scene triggered by the collapse of the crypto-friendly Silvergate Bank. However, Bitcoin received a boost after authorities stepped in to help save the lenders.
Additionally, analysts have pointed out that Bitcoin’s latest performance received a boost from the U.S. consumer price data, indicating that inflation was still increasing but slower than the previous month. The data might prompt the Federal Reserve to potentially slow down or halt the increase of interest rates.
BTC also received a boost after crypto exchange Binance on March 13 announced plans to convert its $1 billion industry recovery fund to tokens such as Bitcoin.
By factoring in historical price movements and external factors such as regulation, it remains to be seen if Bitcoin’s movement is a bull run or not.
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