What Is Bitcoin's Current Recovery and What to Expect Next

Bitcoin's current recovery is a complex and multifaceted topic. The cryptocurrency has been on a rollercoaster ride, with a significant drop in value in 2022, but has since shown signs of recovery.

According to recent data, Bitcoin's price has increased by over 30% in the past month, with many analysts attributing this growth to the cryptocurrency's adoption by institutional investors.

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Bitcoin's price recovery is gaining momentum, with some analysts predicting a significant surge in the coming months. TradingShot, a crypto analyst, believes that the Bitcoin price has already entered phase 3 of the bull cycle and is on track to hit $150,000.

The next high is expected to be on the -0.5 horizontal Fibonacci extension and on the 2.0 Channel Fibonacci extension, which aligns with Standard Chartered's prediction that Bitcoin could hit this price level by year-end 2025.

A key support level during BTC bull cycles is the 1-week 50 MA, which has acted as support since March 2023 and was successfully tested twice on August 5 and September 6.

The current price of $60,429 is a 4.1% increase in the past 24 hours, making it an impressive performance in the larger timeframe, with a 13% increase in the past seven days.

However, not all analysts are optimistic about the current price surge, with Ali Martinez warning that the Bitcoin price is approaching a major on-chain resistance zone around $60,680.

If the price fails to break this resistance, a drawdown to the $57,235 level is possible, but if it breaches the zone, it could climb to $64,300.

Bitcoin's current recovery is a topic of interest, and technical analysis can provide valuable insights. The price has retested and failed to close above the descending trendline and the 100-day Exponential Moving Average (EMA) at $60,705.

The Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart hover around their neutral levels of 50 and zero, indicating that neither the bulls nor the bears control the momentum. This suggests that the price movement is currently neutral.

Bitcoin's price is trading just above $61,000, and if it retraces, it could find support around the daily level of $56,022. This level is a crucial support zone that could determine the direction of the price movement.

The cost-basis distribution of the BTC supply around the current spot value of the flagship cryptocurrency reveals a major on-chain resistance zone around the $60,680 zone. This resistance zone is thick with investors who bought over 770,390 BTC between the price range of $59,885 and $61,625.

If the price fails to break this resistance zone, a drawdown to the $57,235 level is possible. However, if the $60,680 zone is breached, the price could climb to $64,300.

The Bitcoin price has been on a roll, reflecting a 4.1% increase in the past 24 hours, with its value standing at around $60,429.

This significant jump is a great sign for investors, and it's not just a short-term gain – the price of Bitcoin is up by more than 13% in the past seven days.

In fact, just last week, the price of Bitcoin was over $105,000, showing that it's capable of significant growth.

However, it's worth noting that the market can be volatile, and investors should be cautious of overheating open interest.

On Monday, the crypto market took a hit due to the yen, but it quickly recovered on Tuesday, with Bitcoin jumping 7.4% and Ethereum rising 6.4%.

This recovery was not just limited to Bitcoin, with Dogecoin also seeing a 5.3% increase, showing that the market is slowly coming back to life.

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Bitcoin has recovered above $105,000, but it's essential to watch out for overheating open interest.

The crypto market's value jumped on Tuesday, reversing the drop from Monday.

Bitcoin was up 7.4% as of 2:30 p.m. EDT on Tuesday, while Ethereum rose 6.4% and Dogecoin increased by 5.3%.

The improvement in the stock market on Tuesday mirrored the crypto market's growth, highlighting a correlation between stocks and cryptocurrencies on high-volatility days.

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Bitcoin's current recovery is being met with resistance, and it's essential to understand where this resistance lies. The $59,885 – $61,625 price bracket is thick with investors who purchased over 770,390 BTC, equivalent to about $40.6 billion, between this price range.

Investors who were in the red before may want to quickly sell their holdings as soon as they enter profit, which could place a barrier on the Bitcoin price. If the price fails to break this resistance, a drawdown to the $57,235 level is possible.

The Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart hover around their neutral levels of 50 and zero, indicating that neither the bulls nor the bears control the momentum.

Bitcoin is expected to reach $150,000 as it enters phase 3 of the bull cycle. This prediction is based on the 2.0 Channel Fibonacci extension and the -0.5 horizontal Fibonacci extension.

TradingShot, a crypto analyst, has cited phases 1 and 2 of the Bitcoin price bull cycle, noting that they started a multi-month accumulation phase with a potential maximum correction to the 0.382 Fib again.

The Bitcoin price has already touched its 1-day 50 moving average (MA) for the first time in over 2 months and is now rebounding. This is a natural technical reaction during aggressive uptrends.

The key support level during BTC bull cycles is the 1-week 50 MA, which has acted as support since March 2023 and was successfully tested twice on August 5 and September 6.

The Fibonacci Channel Up is a powerful tool for analyzing Bitcoin's price action. TradingShot notes that bullish legs are technically part of Channels, and this is no different as the Bitcoin price has been trading on a Fibonacci Channel Up since the very bottom of the last Bear cycle on November 21, 2021.

This pattern has three phases, with each phase trading within a specific Fibonacci range. In phase 1, the Bitcoin price traded within the Fib 0.0 to 1.0 range, and in phase 2, it traded within the 0.5 to 1.5 range. For phase 3, TradingShot expects the flagship crypto to trade within the Fib 1.0 to 2.0 range.

Rallies within this pattern tend to lead to a 100% surge, as seen in the April 14, 2023, and January 11, 2024 highs. The Bitcoin price then pulled back towards the 0.382 Fib retracement level, and this similar price action could play out for phase 3.

TradingShot's analysis suggests that the next high is on the horizon, with the Bitcoin price expected to reach the -0.5 horizontal Fibonacci extension and the 2.0 Channel Fibonacci extension at $150,000. This is a significant level, and if the price fails to break this resistance, a drawdown to the $57,235 level is possible.

The high symmetry between sequences, legs, and pullbacks within this pattern is striking, and it's no wonder that TradingShot is bullish on Bitcoin's prospects. With the price already trading on a Fibonacci Channel Up, it's likely that we'll see further gains in the coming months.

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Bitcoin's price surge on Tuesday was a welcome relief, with a 7.4% increase in just one day. The drop in crypto on Monday was short-lived, as major cryptocurrencies like Bitcoin, Ethereum, and Dogecoin all saw significant gains.

The correlation between stocks and cryptocurrencies is becoming more apparent, especially on high-volatility days. This means that if the stock market is doing well, it's likely that cryptocurrencies will also see an uptick.

Bitcoin's price is approaching a key resistance zone around $60,680, where a large number of investors bought their coins. This could act as a major barrier to the price climbing higher.

If the price breaches this resistance zone, it could climb to $64,300. However, if it fails to break through, a drawdown to $57,235 is possible. The price currently stands at around $60,429, reflecting a 4.1% increase in the past 24 hours.

The Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart are hovering around their neutral levels of 50 and zero, indicating that neither the bulls nor the bears control the momentum.