Although BTC has gained $8,000 over the past three weeks, and yesterday broke and closed above its 50-day moving average for the first time in three months, it is too early to presume that it is experiencing a Bull Run. Many of the technical indicators that traders use to decipher if a market is bullish or bearish point to different conclusions.

As of 5:30 PM Eastern Standard Time, yesterday Bitcoin was trading at approximately $38,775, gaining almost 1% on the day and 5.7% higher on the week. Although this week’s relief rally appears to be a turning point in the markets, when looking at the bigger picture, the gains this week across-the-board in most crypto’s is nothing more than bargain-hunting.

One of the most reliable patterns in determining a reversal from bullish to bearish is known as a “head and shoulders.” One has clearly formed in Bitcoin and could signal a revisit to the $30,000 level.

Following last week’s dramatic decline in Bitcoin and across cryptocurrencies as a whole, BTC has gained over $4,000 off of the lows from today at $33,000 and at 5 PM, EST is trading at roughly $37,000. It is fast approaching a key level that if taken out could erase the bad memories from this weekend and signal a recovery rally is in full effect. So, did we just witness a bottom?

The path that BTC has taken over the past 2 ½ months should really be no surprise to us at all, for it has followed the exact same trajectory in the three months following its first ATH ($65k) in 2021. Not only have the corrections following both all-time highs matched in both intensity and duration, but the rallies proceeding the apex in both instances also share very similar characteristics.

The bullish reversal we were looking for has occurred in Bitcoin, and that has brought back strong upsides in the rest of the cryptocurrencies, as it tends to do. On Monday, we sighted the low of the day which matched the lowest trading point Bitcoin has seen in the past four months.

Crypto currencies as a whole have had a hard start to 2022, Bitcoin has held up better than most other coins but is still down nearly 12% since the start of the year. This compared to a decline of 20% or more in most other cryptos is pointing to a resurgence of the number one crypto.

Last December (Dec. 9th), we discussed using Bitcoin’s dominance level to predict price action the following day. The article illustrated how it could have effectively been used to predict whether the following trading day results in higher or lower pricing. We outlined a strategy focused on BTC dominance above or below 40%.

While Bitcoin and Ethereum are trading only slightly higher on the week (less than 1% in BTC and less than 4% in ETH), Terra (LUNA) has exploded in value as more value gets locked in the fastest-growing defi ecosystem.

Following the revised dot plot from the Federal Reserve, bitcoin’s price fell by approximately $1000 in the course of fewer than two hours. But as Powell’s Q&A session began following his statement traders got a much more dovish picture of the Fed’s current outlook.