Bitcoin Traders Eagerly Anticipate Market Recovery as BTC Surpasses $57,000

Cryptonews John Brightwater September 10, 2024

Bitcoin Traders Eagerly Anticipate Market Recovery as BTC Surpasses $57,000

On September 9, Bitcoin’s price briefly surged beyond $57,500, marking a notable recovery following an earlier extreme reaction to the August payroll report from the United States. Data from Cointelegraph Markets Pro and TradingView indicated that Bitcoin experienced an increase of approximately 8.3%, rebounding significantly from the week’s lower threshold of $52,546.

This recent uptick has sparked optimism among traders, prompting speculation about the possibility of Bitcoin having reached a bottom. The unfavorable market performance experienced following the August payrolls report, which was weaker than anticipated, had led to a pronounced decrease in Bitcoin values, pushing the price below $55,000 for the first time since the “Black Monday” incident of August 5.

Despite challenges over the weekend, Bitcoin managed to recalibrate, entering into a third consecutive bullish session on the daily chart. A weekly closing price above $53,250 has been deemed favorable, as it appears to safeguard the low end of the purchasing opportunity zone, as elucidated by noted trader and analyst Rekt Capital in recent commentary on social media.

Traditionally, historical patterns suggest that the month of September, often referred to as “Rektember,” can be particularly unkind to risk assets such as Bitcoin. However, Rekt Capital expresses a contrarian viewpoint, predicting potential price increases for Bitcoin in the fourth quarter of 2024, contingent upon navigating through the current month successfully.

Furthermore, analysis from Swissblock Insights indicates that September has often seen Bitcoin experiencing contractions, a likely outcome of profit-taking practices following the summer months, alongside companies’ strategies aligning with new objectives for the close of the fiscal year. Currently, the Bitcoin risk index stands at a concerning 99.62, reminiscent of the levels seen when Bitcoin dipped below $50,000. The signal indicates that a definitive bottom has yet to materialize, raising concerns regarding a further crash to lower levels.

Recent data from CoinGlass shows bullish momentum as Bitcoin navigates through the sell orders positioned between $55,000 and $56,700, with the $57,000 mark attracting substantial liquidity totaling approximately $38.85 million. Notably, short liquidations in Bitcoin amounted to more than $54.2 million from September 8 to 9, paralleling a broader cross-crypto liquidation total of $135.86 million.

The four-hour BTC/USD chart reveals a bullish divergence in the relative strength index (RSI), a momentum indicator that provides insights into market overbought or oversold conditions. This divergence presents a scenario where price declines can occur with concurrent increases in momentum, potentially leading to the market being primed for upward movements.

The prevailing bullish divergence may be emblematic of increasing control by buyers, setting sights on approaching the 200-day exponential moving average, currently positioned at approximately $59,000, in the short term.

In conclusion, while the current market conditions appear to foster cautious optimism among Bitcoin traders, the inherent risks and volatility associated with cryptocurrency investments necessitate thorough research and careful consideration by potential investors.