Bitcoin reclaims $62K, forming a ‘massive bull hammer’ on price chart

Bitcoin has reclaimed $62,000 just a few days after “Crypto Black Monday,” with traders pointing to a bullish pattern on the seven-day price chart, which signals Bitcoin may have hit its floor.

“Bitcoin is seeing a massive green weekly candle with a huge wick,” crypto trader Matthew Hyland said in an Aug. 8 analysis video as Bitcoin crossed $61,000.

“This is currently forming into a massive bull hammer on the weekly time frame,” he said, adding it is highly probable that the bottom is “now in for Bitcoin for this whole structure.”

On Aug. 8, Bitcoin (BTC) briefly touched $62,510 before pulling back to $61,068 at the time of publication. According to CoinMarketCap data, the asset is up 12.46% from Aug. 7.

The quick rebound comes just days after Bitcoin fell below a key support level to $49,751 on Aug. 5, which is being called "Crypto Black Monday". It was itsfirst drop below $50,000 since February.

Some traders think the quick reversal suggests that the recent price dip might have been a bear trap — when experienced traders sell Bitcoin in a controlled manner to temporarily lower the asset’s price to trap short-sellers.

“What an insane weekly. Probably the most epic bear trap I’ve ever seen,” pseudonymous crypto trader Byzantine General wrote in an X post.

The sentiment among future traders has flipped accordingly and is now heavily skewed toward long positions. According to CoinGlass data, there are 52.48% in long positions compared to 47.52% in short positions.

It comes only a day after Morgan Stanley, the largest wealth manager in the United States, authorized its 15,000 financial advisers to start recommending Bitcoin exchange-traded funds (ETFs) to clients.

However, not all crypto analysts believe the bottom is in yet. Some think there could be further downside before Bitcoin hits new all-time highs.

On Aug. 7, 10x Research head of Research Markus Thielen stated that “to ideally time the next bull market entry, we aim for Bitcoin prices to fall into the low 40,000s.”

On Aug. 5, Cane Island Alternative Advisors founder Timothy Peterson claimed that “$40k and $80k equally likely in the next 60 days.”