The price of Bitcoin (BTC) has surged over 11% from its low of $74,400 on April 7, and analysts suggest that onchain and technical indicators are signaling a potential for sustained recovery.
Popular analyst AlphaBTC indicates that Bitcoin is likely to undergo a consistent recovery if it remains above the $81,500 mark.
According to AlphaBTC’s post on April 10, Bitcoin has reestablished itself above the $80,000 psychological threshold, following a retest of the “weekly open” and addressing the inefficiencies created by the Trump 90-day pause pump.
“I am eager to see it return above $81.5k soon, as this could lead to a more sustained upward movement with shorts getting squeezed.”
BTC/USD four-hour chart. Source: AlphaBTC
Rekt Capital, another analyst, echoed similar views, stating that Bitcoin must secure a weekly close above $80,500 to improve its recovery prospects.
“Bitcoin has recently dipped below the red Weekly level, indicating that BTC isn’t entirely out of trouble,” Rekt Capital remarked in an April post on X.
“$BTC must remain above the red area until the Weekly Close for the price to reclaim this Weekly level as support.”
BTC/USD weekly chart. Source: Rekt Capital
Potential for Bitcoin price recovery due to “seller exhaustion”
Bitcoin investors appear to be nearing a state of “near-term seller exhaustion,” as indicated by the diminishing scale of realized losses, based on onchain data from Glassnode.
Analyzing the 6-hour rolling window for realized losses, Glassnode reported that the extent of losses realized during market declines is decreasing with each subsequent price drop.
“Bear markets are typically triggered by periods of increased fear and significant losses,” Glassnode noted in its latest Week On-chain report.
“This indicates that a form of near-term seller exhaustion may be beginning to manifest within this price range.”
Bitcoin: 6-hour rolling losses. Source: Glassnode
Related: Will Bitcoin price face another crash?
Bollinger Bands and W pattern suggest potential for new price highs
Following a five-month low of $74,400 on April 9, Bitcoin tested the lower boundary of the Bollinger Bands (BB) indicator, which has provided price support for the past five weeks, according to data from Cointelegraph Markets Pro and TradingView.
BTC/USD weekly chart with Bollinger Bands. Source: John Bollinger/TradingView
This development is seen as a positive sign for Bitcoin, according to John Bollinger, the creator of the Bollinger Bands volatility indicator. He mentioned that the Bollinger Bands indicator utilizes standard deviations around a simple moving average to assess potential price ranges and volatility.
Bollinger suggested that Bitcoin could be forming the second low of a W-shaped pattern on the weekly chart—a double bottom followed by an expected upward movement.
“We’re observing a classic Bollinger Band W bottom emerging in $BTCUSD,” Bollinger stated alongside a chart, noting that the pattern “still requires confirmation.”
In this context, Bitcoin’s drop to $76,600 on March 11 marked the first bottom, while the recent decline to $74,400 constituted the second.
If validated, BTC’s price could bounce from the current levels towards the neckline of the W pattern at $88,800, eventually aiming for the target of $106,000.
This article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers are encouraged to conduct their own research before taking action.
