Bitcoin has made a remarkable recovery in recent days climbing back above the $60K after a sharp decline earlier this month. As of the latest data from coinmarketcap, BTC is trading at $60,564.37 representing a 5.33% increase in the last 24 hours. This resurgence has pushed Bitcoin's market cap to $1.2 trillion, firmly cementing its position as the top crypto by market value.
BTC experienced a massive drop on August 5th, dropping to around $49K amid recession fears and the release of Non-Farm Payroll (NFP) data on the first Friday of the month. However, this dip appears to have been short-lived, as buyers quickly stepped in to support the price at a key demand zone.
Technical analysis suggests that the $49K level represented a drop to the demand zone and also filling fully a fair value gap, potentially setting the stage for further upside.
Bitcoin is currently trading within a bullish flag pattern that has been in place since early March, with many analysts eyeing a potential breakout that could see the price towards the much-anticipated $100K level before the end of the year.
But is this possible? It is Yes, but if only BTC breaks above a crucial zone. Looking at the next target, BTC now targets the bullish flag resistance. If it manages to break above it as seen with its recent momentum from $49K, then breaking and closing above the flag would be an easy thing.
Looking at the indicators, the daily RSI is currently at 47, from an oversold reading of 26 recorded on 5th Aug. This shows the bullish momentum building and that we still have plenty of room for more upside movements, potentially a momentum that we would need to break above past the heavy resistance at $70K zone.
Looking further at a recent tweet shared on X, a crypto analyst stated and showed that BTC is gearing up for a massive bull run after the halving event that happened mid-April.
On-chain metrics and market sentiment also shows a bullish outlook. Data shared by renowned crypto analyst Ali Martinez on X suggests that while retail traders faced liquidations during the recent market crash, long-term Bitcoin holders seized the opportunity to accumulate. These investors reportedly added around $10 billion worth of BTC to their portfolios during the dip.
Despite the positive price action, he also stated that many traders are still fearful of another potential drop before a new all-time high is established. This level of "extreme fear" often presents an ideal buying opportunity for institutional investors and large-scale traders looking to build positions.
Supporting the bullish case, onchain metrics from Coinglass, $89.38 of short positions were liquidated on the 8th of August, backing up the bullish momentum.
As Bitcoin approaches the strong resistance of the bullish flag pattern, all eyes are on whether it can break and close above this key level this time, with the bullish momentum building from the recession fears. A successful breakout could pave the way for a rapid ascent, potentially hitting the psychologically $100K level in the remaining quarter of the year.
The recent halving event is also expected to play a crucial role in BTC's long-term price trajectory. Historically, halvings have preceded bull runs and technicals show that we are still in the early stages of this post-halving cycle.