Bitcoin starts to rebound. Can it regain $60,000?

This year has been the best year for Bitcoin since November 2020, when all signs pointed to a bull run. At the beginning of the year, analysts, investors, and traders were extremely confident in the ability of the bull market to maintain the newly achieved price levels. This was the case in the first quarter of this year until it turned out not to be the case.

It is undeniable that the bear market that brought down the price of Bitcoin has left its mark on the altcoin market. Because even so far, Bitcoin has not made the leap that analysts had hoped for, that is, the most valuable asset has reached $100,000 for the first time since its creation.

Why is August an important month for Bitcoin?

However, August seems to be heading for a different wave. A bullish wave, to be precise. Looking at the technical charts, Bitcoin has seen a daily profit of nearly 24% after successfully defending the $41,000 price level.

Unsurprisingly, the fear and greed signals have turned bullish for the first time in a long time. This means that the outlook for the Bitcoin market is largely certain for continued upward movement. But what is really driving these views?

Institutional investment interest and accumulation surge

Since institutions entered the market, they have not stopped pouring in. While some institutions took a break during the bear market and did not acquire more Bitcoin, they have since returned and have been buying large amounts of Bitcoin in the last month. While this alone will not drive up the price of Bitcoin, it has something to do with the market regaining its pace.

On the other hand, according to on-chain analysis, accumulation by miners and long-term whales has been ongoing since May. Therefore, it is safe to say that the fundamental state of the Bitcoin market is very bullish at the moment, and $60,000 may not be a problem for Bitcoin this time around.

At the same time, the market cannot let its guard down, as Lex Moskovski pointed out that mild selling is still happening. “As LTH-SOPR has hit this year’s low for two consecutive days, some long-term Bitcoin holders are selling this rally at minimal profits.”

Of course, skeptics also remain bearish and make it clear that it will take more than just Bitcoin maintaining $40,000 to convince the market that the bulls are truly back. In this regard, Bitcoin analyst and skeptic CryptoWhale said: "The remarkable part about this bull trap is that 99% of Bitcoin traders currently believe that we are still in a bull market. These false rallies often make many people lose their minds, which is very common in bear markets. During the Bitcoin bubble in 2018, we witnessed them almost every month."