Bitcoin Surges 11% From April Low, Analysts Predict Recovery

Bitcoin (BTC) has experienced a significant rebound, surging over 11% from its April 7 low of $74,400. Analysts are optimistic that onchain and technical indicators suggest a sustained recovery for the cryptocurrency.

According to AlphaBTC, a popular analyst, Bitcoin is poised for a sustained recovery if it manages to hold above $81,500. The analyst noted that Bitcoin has reclaimed the $80,000 psychological level after retesting the “weekly open and filling in some of the inefficiency left by the Trump 90-day pause pump.” AlphaBTC expressed hope that Bitcoin would soon rise above $81,500, which could lead to a more sustained upside as shorts get squeezed.

Rekt Capital, another prominent analyst, shared similar sentiments. He stated that Bitcoin needs to produce a weekly close above $80,500 to increase the chances of recovery. Rekt Capital also noted that Bitcoin has recently lost the red Weekly level, indicating that the cryptocurrency is not yet out of the woods. He emphasized the importance of Bitcoin staying above the red level until the weekly close to reclaim this level as support.

The recovery of Bitcoin's price could be fueled by “seller exhaustion.” Onchain data from Glassnode suggests that investors are approaching a degree of near-term seller exhaustion, as evidenced by the reduced magnitude of realized losses. Glassnode's latest Week On-chain report highlighted that bear markets are typically initiated by periods of heightened fear and substantial losses. The data indicates that the magnitude of losses realized during these drawdowns has started to decrease with each successive price leg lower, suggesting a form of near-term seller exhaustion may be developing within this price range.

Technical indicators also point to a potential new price high for Bitcoin. After hitting a five-month low of $74,400 on April 9, Bitcoin retested the lower boundary of the Bollinger Bands (BB) indicator, a line that has supported the price over the last five weeks. John Bollinger, the creator of the Bollinger Bands volatility indicator, noted that Bitcoin price could be forming the second low of a W-shaped pattern formation on the weekly chart. This pattern, if confirmed, could see Bitcoin's price recover first toward the neckline of the W-shaped pattern at $88,800 before rising toward the target of the prevailing chart pattern at $106,000. Bollinger emphasized that the pattern still needs confirmation.