Bitcoin Next Target Of $64K After Bullish Hammer Candlestick?

Bitcoin (BTC)’s surge above $43,000 on Feb. 28 is a signal that buying sentiment has returned after last week’s brutal sell-off in risk markets, including the S&P 500.

BTC has rallied over 14% to hit $43,200 at press time as traders react to developments surrounding the Russia-Ukraine war. In doing so, the cryptocurrency quickly broke its correlation with the US stock market to behave like gold, a safe haven asset, which also surged higher in the 28th trading session.

BTC/USD vs. XAU/USD and S&P 500 daily chart | Source: TradingView

Bitcoin downtrend is exhausting

Analyst Johal Miles has detect hinted at “significant buying pressure” in the market, adding that its downtrend may be drying up.

Miles highlighted Bitcoin’s recent retracement moves as it tested $34,000 as support. For example, on Jan. 24 and Feb. 24, BTC formed a bullish hammer candle on its daily chart, indicating a possible bullish reversal.

BTC/USD daily chart | Source: Johal Miles

Similar bullish hammer candles appeared in May and June of last year, which bottomed below the critical $30,000 support. The move was followed by a strong bullish move in the bitcoin market, with BTC price peaking at $69,000 in November 2021.

Also Miles notice that buying sentiment is much higher in the $28,500-$34,200 zone than in the $46,000 region, a support that bitcoin broke in January 2022.

“The key difference between the current range and the range we previously had at $46,000 is that BTC is currently seeing significant buying pressure as the price hits the lows.

BTC downtrend is exhausted, similar to last summer.”

BTC Rising to $64,000?

Alexander Tkachenko, CEO of VNX – a Luxembourg-based tokenization platform, stressed Bitcoin’s strong recovery potential after the US stock market showed signs of bottoming out, adding that BTC could reach $64,000 based on the Wycoff method.

Wycoff pattern on BTC/USD daily chart | Source: TradingView

“From a global perspective, all indications are that Bitcoin has entered a reaccumulation phase according to Wycoff’s methodology.

We can expect a move towards $64,000 and further uptrend in the medium term. Bitcoin’s potential growth is imminent as predicted, especially given its close relationship with the traditional stock market, the S&P index.”

The macro analyst also noted that the S&P 500 may have bottomed following its historic reversal on Feb. 24. There hasn’t been a retracement like this since the 2008 financial crisis.

Daily SPX Histogram with MACD | Source: TradingView

Mark Newton, Head of Technical Strategy at FS, called:

“I like long and buy the dip and forecast the market to move higher at FOMC in March.”

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions

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