Bitcoin (BTC) +4%: the start of a major recovery? August 02 technical analysis

Yesterday, BTC saw an upside reaction near a crucial support level, with a +4% rebound. After touching the area around $29,000, the flagship crypto is now heading towards $30,000. Could this rise be the long-awaited sign of a recovery for bitcoin (BTC)?

Bitcoin (BTC) Rebounds Near Key Support Level

Bitcoin price showed some volatility yesterday, but the session ended in favor of buyers. Indeed, BTC quickly rebounded nearly 4% after hitting a low of $28,686.

Importantly, this low sits very close to a critical support zone near $28,331. On the daily chart of bitcoin (BTC), an oblique support (in white) can be observed since mid-March, which crosses with another horizontal support around the $28,331 level. Therefore, this area could be considered particularly relevant.

From this perspective, the bullish reaction of bitcoin (BTC) on Tuesday could mark the start of a bullish recovery. However, there is always a chance that the price could drop a little further inside the gray zone before heading back up.

A relevant long-term bullish signal?

Although the medium-term price movements leave investors perplexed, a very relevant bullish signal is manifesting on the monthly chart of bitcoin (BTC). This indicator was identified by trader Titan of Crypto. In his analysis on Twitter published yesterday, he considers that the current cycle (2023) seems to be similar to the bull cycle of 2016. “ According to this indicator, BTC is more likely to repeat the cycle of 2016 than that of 2019“, he adds.

Indeed, on the chart, we can observe that bitcoin (BTC) is about to create a new all-time high, as the oscillator is showing a crossover similar to that of 2016.

So, despite short-term volatility moves, the BTC bull-run now seems only a matter of time. In any case, buying opportunities should soon arise. At the moment, the community is keeping a close eye on Halving Litecoin.