Bitcoin Forms Apparent 'Double Bottom,' But Weak Momentum May Force Retest of $34,000

Bullish sentiment returned to the cryptocurrency market on March 1 after most coins rallied, with Bitcoin bulls saying they intend to hold the $40,000 level as future support.

The price of bitcoin ( BTC ) has surged 20 percent from a low of $37,409 on Feb. 28 to an intraday high of $44,951 on Tuesday, according to data from Cointelegraph Markets Pro and TradingView.

Here’s what several analysts have to say about the sudden bullish reversal in Bitcoin’s price and what crypto traders can expect during this time of heightened global tensions.

Retesting $34,000 'Not Impossible'

BTC sellers were firmly in control of the market ahead of Tuesday’s price surge, according to a report from Delphi Digital, which published the chart below, noting that “after recent events, caution over the past two weeks has indeed proven to be The right thing to do."

The main lower level of support to watch is $34,000, according to Delphi Digital, based on the amount of support seen in January when a hawkish Fed sent markets crashing "before a strong rally."

Delphi Digital says:

“Since then, with Russia announcing its invasion of Ukraine, the price has failed to maintain momentum and has returned to this $34,000 area. At the time of writing, the price has rallied to $38,000, but a return to support at $34,000 is certainly not impossible."

Holders are hopeful

A more bullish forecast was offered by on-chain analytics firm Glassnode, which noted that “despite a correction of more than 50% since the November highs,” the market’s momentum throughout the August-November rally Most buyers "didn't close their positions."

According to Glassnode’s analysis of the URPD metric, which shows the distribution of prices at which the token supply last moved on-chain, “major redistribution appears to be coming from investors buying in the $60,000-plus range,” most recently at $35,000 to $38,000 USD price range for sale.

Glassnode says:

“This spending behavior describes a market dominated by price-insensitive holders who appear unwilling to liquidate their tokens, even at a loss while holding them. Meanwhile, with May-July 2021 In comparison, the number of top buyers has increased significantly, but they represent a much smaller proportion of the investor pool."

Related: 3 Reasons Why Bitcoin Price Rallyed to $45,000 Into March

Is Bitcoin's inversion real?

Options trader and pseudonymous Twitter user John Wick offered one last bit of bullish insight, posting the chart below, noting that "you can see we have a clear double bottom, which is a sign of strength."

The cryptocurrency market capitalization is currently $1.93 trillion, with Bitcoin dominance at 43.2%.