Bitcoin (BTC) rallied above $41,000 on Feb. 28 with fresh buying sentiment returning after last week’s brutal sell-off in risky markets including the S&P 500. We have prepared the evaluations and predictions of famous analysts for Kriptokoin.com readers.
Is the bear trend ending for Bitcoin?
The price of BTC rose over 9% to $41,300 partly as traders reacted to the ongoing development in the Russia-Ukraine crisis. The leading cryptocurrency briefly broke its correlation with US stock indexes and performed more like safe-haven gold, with its price also rising in early trading on February 28.
BTC versus Gold and S&P 500 daily price chart / Source: TradingView Johal Miles, an independent market analyst, has identified ‘significant buying pressure’ in the market and indicates that the bear trend He added that it may be moving towards the end. Johal Miles underlines Bitcoin’s recent upward moves after testing levels near $34,000 as support. As an example, he highlights that on January 24 and February 24, the price of BTC formed a bullish ‘hammer candlestick’ on its daily chart, signaling a U-turn during an established downtrend.
BTC daily price chart / Source: Johal Miles, TradingView The same bull hammers appeared in May and June last year and their bottoms were below the key $30,000 support level. This was followed by a sharp price reversal in the Bitcoin market, with the price of BTC climbing as high as $69,000 in November 2021.
Additionally, Johal Miles notes that buying sentiment in the $28,500-$34,200 region is relatively higher at around $46,000, with a Bitcoin support breaking to the downside in January 2022.
On Feb. 28, an analyst commented, “The main difference between the current range and the range we had at $46,000 before is that we now see significant buying pressure when we visit the lows,” adding
For me, the end of the bear trend is like summer.
Will Bitcoin go to $64k?
VNX CEO and founder, a Luxembourg-based token issuance platform, Alexander Tkachenko highlights the potential for Bitcoin to recover sharply after a confirmed US stock market bottom and adds that its price could reach $64,000 according to the Wycoff methodology.
BTC daily price chart with Wycoff pattern / Source: TradingView “From a global perspective, all signs point to Bitcoin entering the accumulation phase again according to Wycoff’s methodology,” said the analyst.
A move towards $64,000 and a further uptrend in the medium term can be expected. The potential growth in Bitcoin price is imminent as predicted, especially judging from the coin’s close ties to the mainstream or traditional stock market, the S&P Index.
Macro analysts also note that the benchmark S&P 500 may have started bottoming out after making a historic comeback on February 24. In detail, the index rebounded by around 4.5%, despite initially falling more than 2.5%. There has been no such turnaround since the 2008 financial crisis.
“Historical priority says we’re near the bottom of the fix”
Chris Murphy, co-head of derivatives strategy at Susquehanna International Group, says sharp stock market returns during a price correction are “indicative of a classic bear market rally,” except when the economy is not in a recessionary phase. While highlighting US economic data ranging from a strong consumer balance sheet to record high corporate earnings and a strengthening labor market, Chris Murphy said:
Historical priority is to hit the lows of the ongoing correction if we avoid a recession. He says we are close.
SPX daily price chart ft. MACD indicator / Source: TradingView Opinions are in line with what FS Insight predicted in its latest S&P 500 market analysis. The firm, which was co-founded by Tom Lee, former equity strategist at JPMorgan, points out that the index is showing signs of bottoming out. Mark Newton, head of technical strategy at FS, adds in a note:
I prefer to go long and buy on the lows, predicting that markets will run higher until the March FOMC and growth outperforms value.
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