Bitcoin (BTC) recovered sharply from the intra-week lows of below $50,000, signaling aggressive buying at lower levels. Although this is a bullish sign, veteran trader Peter Brandt believes the selling is not done yet. Brandt said in a X post that there is a 50% possibility of Bitcoin falling below $40,000.
However, the Bitcoin bull-bear market cycle indicator, which had turned negative, has again flipped bullish. CryptoQuant founder and CEO Ki Young Ju said in a post on X that several Bitcoin onchain cyclical indicators that were on the “borderline have now shifted back to signaling a bull market.”
Crypto market data daily view. Source: Coin360
Bitcoin’s recovery has attracted buying in select altcoins that have turned around and are attempting to start a new up move. If Bitcoin maintains above $60,000, the altcoin rally is expected to gain momentum.
What are the overhead resistance levels in Bitcoin that need to be crossed for the cryptocurrency recovery to pick up pace? If an up move begins, let’s look at the top 5 cryptocurrencies that may lead the markets higher.
Bitcoin price analysis
Bitcoin soared on Aug. 8 and reached the moving averages, indicating that the bulls aggressively purchased at lower levels.
BTC/USDT daily chart. Source: TradingView
The bears are trying to stall the recovery at the moving averages, but a positive sign in favor of the bulls is that they have not ceded much ground to the sellers. That improves the prospects of a break above the moving averages. If that happens, the BTC/USDT pair could rise to $70,000. The bears are expected to mount a vigorous defense in the $70,000 to $73,777 zone.
On the contrary, if the price turns down from the current level and breaks below $59,500 it will suggest that the bears are trying to make a comeback. The pair could then slide toward the solid support of $55,724.
BTC/USDT 4-hour chart. Source: TradingView
The moving averages have completed a bullish crossover on the 4-hour chart, and the RSI is above the midpoint, indicating that the bulls have a slight edge. Buyers will have to drive the price above $62,745 to gain strength. The pair may then…
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