Half of the news and analyst pieces out on the internet are bearish on Bitcoin.
This is understandable because BTC's price has been showing some very bearish signs over the last few weeks.
Bitcoin has also been the object of investor confusion and frustration as far back as July, with its low volatility, and its drop from $32,000 to $29,000, followed by another bigger drop from $29,000 to $25,000.
However, what if there was a glaring sign that BTC is about to enter the biggest price recovery this year?
What if BTC is gearing up for a massive comeback, and nobody is paying attention?
Let's go over a few interesting metrics together.
CoinMarketCap's data shows that the Bitcoin chart is relatively healthy in terms of price, both on the daily and weekly timeframes.
The cryptocurrency is showing a 1% increase over the last day and a 3% increase over the last week.
The flagship cryptocurrency was able to achieve this, despite the highly bearish CPI inflation data that was released on Wednesday this week.
According to this data, the CPI rose 3.7% annually in August, despite economists' predictions of 3.6% growth. This showed that inflation was especially bad in the US in August, and was even worse than July's inflation rates.
BTC showed indifference to this and was even able to rally from a $25,900 low to well over $26,500 on Thursday.
This shows a strength on BTC's part; that nobody seems to be talking about.
"Bitcoin is in a cup and handle formation and may be ready to break out anytime soon", according to an analysis piece from trader and crypto analyst, @misterrcrypto on Twitter.
The cup and handle formation is a popular bullish chart pattern, and here's how it works.
They typically look like regular drawings of a cup and are formed when the price of an asset consolidates after going parabolic.
As illustrated above, January until July's bullishness, when BTC went from $15,000 to $32,000 formed the cup itself. The consolidation of BTC from July until date now forms the handle of said cup.
The analyst rightly pointed out that BTC is currently bounded by the $32,000 support and the $25,000 zone as illustrated above.
However, the catch is that the $25,000 zone becomes weaker, the longer BTC continues to test it.
If Bitcoin does not make a move to the upside soon, we may see an "invalidation" of $25,000, before a stronger drop to $21,400 or lower.
To summarize things, the analyst does not believe that the $25,000 zone will be broken so easily.
One thing to realize is that BTC has now confirmed a death cross between its 50 and 200-day moving averages, as illustrated below.
This alone indicates that the cryptocurrency may now be in the hands of the bears, despite appearances.
Bitcoin is hanging over a very thin line around $25,220 and appears stable above it for now. The 3% rise in BTC price over the last week has brought the cryptocurrency to some safe ground above the $25,220 zone, and BTC may even be in the early stages of a bounce.
However, despite the odds, Arthur Hayes, a co-founder of BitMEX sent out an interesting post on SubStack and Twitter.
According to Hayes, Bitcoin may reach $70,000 soon, and the only reason it isn't there now is that investors are focusing too much on the FED rate.
Overall, Bitcoin may either have bounced off the $25,220 zone truly or may only be printing a fakeout pattern before an even bigger drop.
BTC clearly has a bright future ahead of it. However, how quickly can that future arrive?
CoinCodex's AI models have a few insights as to what to expect from BTC from September until October.
This AI model uses aggregated readings from technical, on-chain and social metrics to generate a prediction for Bitcoin's price.
According to the AI, BTC is expected to recover very soon and rally straight up to $28,679 by mid-October.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.