- Bitcoin’s price chart shows a V-shaped recovery pattern, indicating a potential path to a new all-time high.
- Analyst Michal van de Poppe believes that if Bitcoin holds above $57,500, it could reach a new ATH in September/October.
- However, analyst Peter Brandt suggests a 50% chance that BTC revisits sub-$40,000 levels before the next halving cycle plays out.
Bitcoin has bounced back sharply from its recent crash below $50,000. Analysts believe this V-shaped recovery could propel the cryptocurrency to new all-time highs if the uptrend is sustained.
The Crash and V-Shaped Recovery
In early August, Bitcoin experienced a sharp decline from over $60,000 to below $50,000, comparable to the crash during the COVID-19 pandemic.
According to analyst Michal van de Poppe, this correction was likely due to Jump Trading suddenly selling off crypto assets. However, Bitcoin quickly recovered in a V-shaped pattern back towards pre-crash levels.
In a V-shaped recovery, an asset sees a steep price decline followed by a sharp move upwards. The recovery is complete when the price hits resistance at the top of the “V”, known as the neckline.
Bitcoin is exhibiting this pattern, currently trading just below the neckline around $60,500. For the recovery to continue, bulls must defend support at $57,500. If successful, Bitcoin could hit new all-time highs in September/October according to van de Poppe.
Overcoming Resistance
However, some analysts believe there may be further downside before new highs. According to Peter Brandt, there is a 50% chance Bitcoin revisits below $40k before continuing its bull run.
In the short-term, Bitcoin faces stiff resistance around $62,000 where the 50-day and 100-day moving averages converge. It needs to flip this into support to avoid a looming death cross on the charts.
On-chain data from IntoTheBlock reveals significant congestion around $62,000. Approximately 763,800 BTC was previously bought by 164 million addresses in this price range.
Meanwhile, large ask orders are stacking up around this level according to CoinGlass. Over $4.6 billion worth of asks sit between the current spot price and $62,000.
Bitcoin bulls must overcome this wall of resistance for the V-shaped recovery to translate into new all-time highs.
