Crypto:
30188
Bitcoin:
$69.511
% 3.90
BTC Dominance:
%54.4
% 0.13
Market Cap:
$2.44 T
% 3.67
Fear & Greed:
74 / 100
Bitcoin:
$ 69.511
BTC Dominance:
% 54.4
Market Cap:
$2.44 T

Bitcoin’s Bullish Surge: Is It the ‘Real Deal’?

Bitcoin 1

The Bitcoin market has recently gained an impressive 14% within the course of a week, and this has created a lot of hype among traders as to whether this was indeed a legitimate market pump. Crypto trader “Roman” who operates under a pseudonym says that this is as real as it gets since fundamentals are also indicating the same.

The Necessary Correction and Future Predictions

Some of the most recent movements in Bitcoin price include a sharp fall from its record high of $73,738 to a 21% decline which saw the price drop to $58,000 on May 2. This trend Roman described as a ‘correction much needed’ that forms the basis for future price increase. They pointed out a reversal pattern at the top end, which was a spinning top on the daily chart at $66,278 on May 20. Roman believe that Bitcoin will not experience a period of consolidation anymore until it reaches the $90,000 mark.

“I believe that we will go up to $90,000-$100,000 before we get another round of consolidation or correction,” said Roman.

Market Sentiment and Regulatory Speculation

At the time of writing, Bitcoin’s price reached $70,140 and this increase is associated with growing expectations regarding possible regulatory decisions. According to the reports, the United States Securities and Exchange Commission (SEC) might soon clear spot Ether exchange-traded funds (ETFs). This has further fuelled the market optimism as Crypto Fear & Greed Index has risen by 12 points to reach the “Extreme Greed” level of 76 on 21 May.

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John Glover, Ledn chief investment officer, was aghast at how this speculation has affected Bitcoin price. ”It only logic that ETH went up higher on this news; to me it is rather surprising that this pushed up BTC price as well because there should not be any change to demand of BTC from an SEC approval for ETH,” Glover noted. He also expected some consolidation and profit taking around the $71,000 figure.

Potential Short-Term Volatility

While the headline is upbeat, some of the traders are expecting fluctuations in the short-run. The analysis of the liquidation data of CoinGlass shows that it would require a minor rise in the price of Bitcoin to about $71,000 or by just 1% to lead to around $766. Liquidation of short position of $73 million. On the other hand, a decline to about $1,000 less or $69,400 would amount to $101.54 million in long positions.

Glover suggests that Bitcoin prices may go a little down before going up again. “I would guess that we have a bit of profit taking and therefore the BTC prices are likely to drop from the current level of $71,000 in the next few days as well,” he said.

The market continues waiting for potential pullbacks before Bitcoin can advance in its macro trend higher.

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