Bitcoin is hitting a double bottom on the weekly chart, but weak momentum could force the price to retest $34,000

Optimism returned to crypto markets on March 1 after the majority of altcoins showed a trend reversal and bitcoin bulls announced their intent to hold $40,000 as future support.

Data from TradingView shows that bitcoin price is up 20% from $37,409 on Feb. 28 to an intraday high of $44,951 yesterday (March 1).

BTC/USDT 4 hour chart | Source: TradingView

Here’s what some analysts are saying about Bitcoin’s sudden bullish move and what traders can expect at a time of ongoing global stress.

$34,000 retest “not unexpected”

Bitcoin bears were firmly in control of the market ahead of Tuesday’s price surge. According to a report by Delphi Digital, “The caution of the past two weeks has indeed been proven correct in the wake of recent events.”

BTC/USDT 6 hour frame chart | Source: Delphi Digital

According to Delphi Digital, the key support to watch is $34,000, which was seen in early January when Fed dovish policies rattled markets “before embarking on an impressive rally.”

Hodlers are very confident

A more optimistic forecast comes from on-chain analytics firm Glassnode, which notes that “despite a correction of more than 50%” since the November high, the majority of buyers have entered the market, while markets rallied during the August-November -Rally “not liquidated but their positions.”

Bitcoin URPD | Source: Glassnode

According to Glassnode’s analysis of the URPD index, which shows the distribution of the coin’s supply at the price it last moved at on the chain, “the distribution appears to be coming from the very investors who are within the $60,000 or bought more” and recently sold in the $35,000-$38,000 range.

“This spending behavior describes a market dominated by apathetic price action holders who seem unwilling to liquidate their coins even if they are making losses. Meanwhile, top buyers have grown significantly and make up a much smaller portion of the investor pool compared to May-July 2021.”

Double bottom

A final glimpse of the uptrend came from popular trader John Wick, who posted the chart below, noting that “You see we have a clear double bottom with a sign of strength wonderfully strong”.

#BTC

My current favorite is the weekly chart. You can see we have a clear double bottom with a nice sign of strength.

We also have a confirmed reversal. Stops should always be placed below the signal wick.

I’d be surprised if this setup cost us over $60,000. pic.twitter.com/szifgfkNQK

—John Wick (@ZeroHedge_) March 1, 2022

“My current favorite time frame is the weekly chart. You can see Bitcoin has a clear double bottom with a good sign of strength. There is also a confirmed trend reversal. The stops should always be placed under the wick of the signal candle. I would be surprised if this setup takes bitcoin over $60,000.”

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According to Cointelegraph

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