Bitcoin has reclaimed $62,000 just a few days after “Crypto Black Monday,” with traders pointing to a bullish pattern on the seven-day price chart, which signals Bitcoin may have hit its floor.
“Bitcoin is seeing a massive green weekly candle with a huge wick,” crypto trader Matthew Hyland said in an Aug. 8 analysis video as Bitcoin crossed $61,000.
“This is currently forming into a massive bull hammer on the weekly time frame,” he said, adding it is highly probable that the bottom is “now in for Bitcoin for this whole structure.”
$60,497 briefly touched $62,510 before pulling back to $61,068 at the time of publication. According to CoinMarketCap data, the asset is up 12.46% from Aug. 7.
The quick rebound comes just days after Bitcoin fell below a key support level to $49,751 on Aug. 5, which is being called “Crypto Black Monday.” It was its first drop below $50,000 since February.
Some traders think the quick reversal suggests that the recent price dip might have been a bear trap — when experienced traders sell Bitcoin in a controlled manner to temporarily lower the asset’s price to trap short-sellers.
“What an insane weekly. Probably the most epic bear trap I’ve ever seen,” pseudonymous crypto trader Byzantine General wrote in an X post.
The sentiment among future traders has flipped accordingly and is now heavily skewed toward long positions. According to CoinGlass data, there are 52.48% in long positions compared to 47.52% in short positions.
