Bitcoin has surged past the $62,000 mark for the first time since August 3, leaving futures traders scrambling to adjust their positions.
Bullish Patterns Emerge
On August 8, Bitcoin briefly touched $62,510 before pulling back to $61,068. This quick rebound, following a sharp dip to $49,751 just days earlier, has fueled speculation that Bitcoin has hit its floor. According to crypto trader Matthew Hyland, Bitcoin’s recent performance on the seven-day chart is forming a “massive bull hammer” pattern, which suggests a potential reversal and signals that the bottom might be in for this market cycle.
“Bitcoin is seeing a massive green weekly candle with a huge wick,” Hyland explained in an August 8 analysis video. He emphasized that the current pattern is a strong indicator that the recent low may be the final bottom for this structure.
Rebound After “Crypto Black Monday”
Bitcoin’s climb above $62,000 follows a turbulent period where it dropped below the crucial $50,000 support level on August 5, an event dubbed “Crypto Black Monday.” This marked Bitcoin’s first dip below $50,000 since February, sparking concerns among traders. However, the rapid recovery has led some to believe that the drop was a bear trap, a strategy where seasoned traders temporarily drive the price down to catch short-sellers off guard.
Pseudonymous crypto trader Byzantine General echoed this sentiment in an X post, calling the recent price action “probably the most epic bear trap I’ve ever seen.”
Futures Market Sentiment Shifts
As Bitcoin recovered, sentiment among futures traders shifted dramatically. According to CoinGlass data, long positions now make up 52.48% of the market, compared to 47.52% in short positions. This suggests that traders are increasingly confident in Bitcoin’s continued upward movement. However, the significant amount of leveraged long positions means that if Bitcoin falls below the $60,000 level again, it could trigger substantial liquidations.
Morgan Stanley’s Endorsement and Future Predictions
The surge also comes on the heels of Morgan Stanley’s announcement that it has authorized its 15,000 financial advisers to recommend Bitcoin exchange-traded funds (ETFs) to clients. This endorsement from the largest wealth manager in the U.S. is seen as a significant step toward broader institutional adoption of Bitcoin.
Despite the bullish momentum, not all analysts are convinced that Bitcoin’s bottom is in. Markus Thielen, head of research at 10x Research, suggested that Bitcoin could still fall into the low $40,000s before the next bull market begins. Similarly, Timothy Peterson, founder of Cane Island Alternative Advisors, stated on August 5 that Bitcoin could just as likely hit $40,000 or $80,000 in the next 60 days, indicating continued volatility.
