Bitcoin’s (BTC) 14% rise over the past week has convinced traders that it could be the “market pump for the real deal” – with another correction not expected until it does not reach $90,000.
“I think this is the ‘real’ pump of the market where fundamentals and technologies provide a confluence,” crypto trader Roman told Cointelegraph.
They explained that the fall in Bitcoin’s price, from an all-time high of around US$73,738 to a 21% drop to US$58,000 on May 2, was a “much-needed correction to future price increases.”
Roman pointed to the “bullish reversal pattern” seen on Bitcoin’s price chart this week as a strong indicator that it will not fall into another consolidation period until it breaks above at least 20 % its March 12 all-time high of $73,679.
“I think we will move to at least $90,000 to $100,000 before we experience another period of consolidation or correction,” they announced.
The bullish reversal trend was indicated by a rotating candle near the bottom of the downtrend on May 20, closing at $66,278, according to data from CoinMarketCap.
Bitcoin was trading at $70,140 at the time of writing.
Bitcoin’s recent price rally comes amid growing speculation that the U.S. Securities and Exchange Commission may move to approve exchange-traded funds (ETFs) for Ethereum (ETH) – something analysts and the community at large have been questioned in recent weeks.
As a result, market sentiment took a positive turn, with the Cryptocurrency Fear and Greed Index increasing by 12 points in just 24 hours, reaching an “extreme greed” score of 76 on May 21.
The surge in positive sentiment came after the SEC urged Ethereum ETF applicants to expedite their 19b-4 applications on May 20.
John Glover, chief investment officer at Ledn, was surprised by the extent to which speculation affected the price of Bitcoin.
“It makes perfect sense that ETH rose following this news; “It’s interesting to me that this led to an increase in the price of Bitcoin, as the SEC’s approval of Ethereum is not expected to have any impact on the demand for Bitcoin.”
about: Bitcoin short positions worth $1.4 billion are at risk of liquidation if the Bitcoin price hits $74.3 thousand.
Glover predicted that there could be some volatility before new highs are reached.
“I think we are seeing some profit taking in the market, which will also push Bitcoin prices down by $71,000 in the coming days,” Glover said.
Despite the positive change in market sentiment, cryptocurrency traders are bracing for a slight drop in the price of Bitcoin before it continues its upward trend, according to liquidation data from CoinGlass.
Even a slight 1% rise to around $71,000 would wipe out around $766.73 million in short position liquidations. On the other hand, a 1% decline to around $69,400 would result in the liquidation of $101.54 million in long positions.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.
