Bitcoin shows signs of recovery with recent higher low

Bitcoin (CRYPTO:BTC) may be showing early signs of recovery following its first higher low in six months, according to market analysts. 

A higher low occurs when a new low in a downtrend is not as deep as the previous one, which could indicate that selling pressure is beginning to ease and a trend reversal might be on the horizon. 

Recently, Bitcoin (BTC) dropped to a low of $53,300, which was not as deep as the August 5 dip that took it just below $50,000. 

The prior low before that was $54,200 on July 5, suggesting that BTC may have found a more stable support level. 

Analyst ‘Mando’ highlighted this pattern in a post on X on September 10, while cautioning that it does not entirely rule out the possibility of further declines. 

Despite these uncertainties, some analysts remain cautiously optimistic. 

Investor and analyst ‘Kaleo’ pointed out that "Bitcoin is in a healthier place now than when it was at the same point post-halving last cycle." 

He noted that 141 days after the halving, BTC was only 19% down from the last cycle top, compared to a 46% dip 141 days post-halving in 2020. 

He suggested that with the potential for spot ETFs, regulatory clarity, and possibly a pro-crypto president in the future, institutional money could flow into the market more easily. 

Another analyst, ‘Rekt Capital,’ examined previous halving cycles and proposed that if history repeats itself, the next Bitcoin bull market peak could occur 518-546 days after the halving event. 

"That would mean Bitcoin could peak in this cycle in mid-September or mid-October 2025," they observed. 

Meanwhile, crypto trader ‘Sykodelic’ expressed confidence in the market bottom at $52,500, stating, “I am 95% confident we have bottomed here.” 

He added that he believes the market will not see levels close to $44,000 again, based on the USDT (Tether) dominance chart that moves inversely to BTC prices. 

"Investing is a game of probabilities," he said, "and based on the evidence of the entire market situation we are in, the probability is greatly weighted to the upside." 

However, concerns about inflation continue to linger. 

Analyst James Check noted that investor sentiment remains low due to weakened purchasing power from high inflation over the past three years. 

He pointed out, “In 2020 purchasing power, the price is 40% below the 2021 all-time high…rather than 25% from the spot all-time high.” 

Higher actual inflation rates than those reported by CPI appear to be affecting investor sentiment in this cycle. 

At the time of writing, the Bitcoin (BTC) price was $56,819.31.