Bitcoin rebounded above $19,000 on September 20, the day after it dropped to a three-month low.
Bitcoin Struggles After Falling Below $20K
On the daily chart, the bitcoin price increased from $18,255 to $19,650. This 7.5% gain reflects similar bullish moves in the stock market, indicating that investors have given in to the massive Fed rate hike expected on February 20-21. September.
BTC/USD daily price chart against ACWI and Nasdaq. Source: Trading View
Opinions differ on how long the Bitcoin bounce will last. Independent market analyst Johnny Mo emphasized that the current Bitcoin price action is similar to its sideways consolidation earlier this year.
In other words, Bitcoin’s current pullback around the $20,000 mark is not a long-term bullish argument.
Rudi Takala, former Fox News anchor and opinion editor at Cointelegraph, also warned cryptocurrency traders to prepare for more “dark times” due to worsening economic conditions around the world.
On the other hand, some analysts believe that Bitcoin is in the process of a strong bullish reversal ahead. Let’s take a closer look at three bullish market predictions.
Bitcoin prints ‘Hammer Bull’
The September 20 Bitcoin candlestick is a bullish hammer that indicates weak bearish momentum, according to an analyst under the pseudonym Trader Tardigrade.
A bullish hammer candle is formed when an asset drops well below its open value but recovers until the close near the same level. Traders see the hammer as a sign of bearish rejection given its history with previous market lows.
Trader Tardigrade applies the same theory to the Bitcoin retracement movement on September 20, noting that a bullish hammer could trigger a reversal.
Bottom of the Pi . cycle
Another technical signal waiting for a strong Bitcoin recovery is the Pi-Cycle bottom.
Specifically, the open source indicator tracks two long-term simple moving averages (SMAs): the 471-day simple moving average and the 150-day moving average. History shows that the bitcoin price reached the bottom of the market cycle when the 150-day SMA crosses the 471-day SMA below.
In the meantime, the price is headed for a strong bullish reversal in the days before and after the 150-day SMA closed above the 471-day SMA. A pseudonymous Titan of Crypto analyst confirmed that sometime around 2023, Bitcoin expects a bullish crossover of the 150-471 SMA.
BTC/USD price weekly chart with pi cycle bottom. Source: TradingView / Titan of Crypto.
“The first transmission happened in July,” he noted, adding:
The second crossing has not yet happened. The reversal may be closer than we think.”
Aurelien Ohayon, CEO of investment firm XOR Strategy, expects Bitcoin to reach $45,000 by early 2023, arguing that the price of BTC follows the famous Wyckoff cycle.
Related: Fed ‘Hammer’ Hit Bitcoin, Ethereum More – Bloomberg Analyst
The Wyckoff cycle consists of four stages: accumulation, coding, distribution, and markdown. After the devaluation phase, the cycle repeats with an accumulation phase, which Ohayeon refers to as a state of continued recovery in the bitcoin price.
BTC/USD is illustrated by the phases of the Wyckoff cycle. Source: XorStrategy.com
The analyst concludes, “Bitcoin is entering the final bullish phase of the Wyckoff cycle.”