- Bitcoin reached a price of nearly $41,500 today
- The price action is forming a falling wedge pattern, which is bullish
- Market sentiment is becoming increasingly positive
The vast majority of the top 100 cryptocurrencies by market cap are in the green after Bitcoin's (BTC) recovery brought some confidence to the market.
At the time of writing, BTC has risen nearly 10% in the last 24 hours and is currently trading at just under $41,500.
This means that the bitcoin price is up about 25% since its recent bottom of $33,000. This could indicate a strong investor interest in this price.
In fact, the recent price action has led to speculation that the market has not yet bottomed out and that the market is ready for the next rise.
Take a look at the Bitcoin K-line chart
After hitting an all-time high in November, BTC prices have been on a significant downward trend as global markets sell off on inflation concerns and weakening demand.
However, the BTC K-chart seems to be forming a falling wedge pattern, which is considered bullish in the cryptocurrency market.
If Bitcoin is able to break the uptrend line and consolidate there for a few days, more traders may allocate their funds in anticipation of further gains.
Bitcoin will likely continue to fluctuate between these long-term support and resistance levels until there is a major shift in market sentiment.
Market sentiment on social media
Many prominent traders on Twitter also seem to be buying at current price levels.
Will Clemente, a senior analyst at Blockware, recently posted a K-line chart. This shows that Bitcoin is currently at the fourth most oversold price level in its history. As a result, the price could recover soon.
Bitcoin is currently the fourth most oversold in its history based on dormant flows.Averaging dollar costs more into this space may be the best approach for long-term investors. pic.twitter.com/5c2irfOL5L
Another well-known trader named Pentoshi seems to agree, suggesting that bitcoin is entering "buy" territory for the first time in months.
With $BTC entering the green zone. My Bera watch ends and bulla watch beginsHow the madness works. Deviated a few months after the macro-based bear market release.
Of course, it is impossible to predict how the cryptocurrency market will develop. But the current sentiment seems encouraging.