For one whole day, after some pretty monotonous consolidations and devastating price dips, Bitcoin price candles were green on a one-hour, four-hour, and one-day chart. With this latest movement, market speculations were rife if this rally was here to stay.
In the case of Bitcoin, its price has been affected by external news in the past. Some consider these factors to be driving forces to the price action and during BTC’s recent bull run the news side of it looked positive. News like Binance and FTX limiting leverage trading and Binance possibly doing an IPO in the US might have contributed to the same. On the other hand, many in the space have also claimed that Bitcoin suffered its recent mini price drop because Amazon denied the news about accepting Bitcoin.
Bitcoin recovered and after the slight drop, pulled back to $39K at press time. This price action and the anticipation of a sustained bull market has left everyone analyzing every move of the asset, including trader and analyst Scott Melker. In a recent video Melker pointed out that, on a monthly chart, Bitcoin made a potential hammer candle for this month which would be ‘a very strong sign of reversal,’ looking at the demand shown in the last three weeks. About the generated demand, he further said:
“There’s a lot of indecision and a bit of weakness by bears to be able to push the price down. Every time they’ve tried…