Bitcoin’s recent price action is a ‘real trading market pump’ to $90,000.
Bitcoin (BTC)’s 14% surge last week gave traders confidence that this could be a “‘real’ market pump.” Another correction is not expected until $90,000 is reached.
Anonymous cryptocurrency trader “Roman” told Cointelegraph that he believes this is a “real” market pump because “fundamentals and technology are providing a convergence.”
They described the decline in the price of Bitcoin from an all-time high of about $73,738 to $58,000, a 21% drop on May 2, as a “much-needed correction for future price increases.”
Roman called the “bullish reversal pattern” visible on the Bitcoin price chart this week a strong indicator that Bitcoin will not fall into another period of consolidation until it surpasses its March 12 all-time high of $73,679 by at least 20%. pointed out.
“I think we will move to at least $90,000-$100,000 before we see another consolidation period or correction,” they declared.
According to CoinMarketCap data, the rotating upper candlestick near the bottom of the downtrend on May 20 indicated a bullish reversal pattern and closed at $66,278.
At the time of this writing, Bitcoin is trading at $70,140.
Bitcoin’s recent price surge comes amid heightened speculation that the U.S. Securities and Exchange Commission could move to approve a spot Ethereum (ETH) exchange-traded fund (ETF). Analysts and the broader community have been doubting this for the past few weeks.
As a result, market sentiment turned positive. The Crypto Fear Greed Index rose 12 points in just 24 hours, reaching an “extreme greed” score of 76 on May 21.
Positive sentiment surged following reports that the SEC urged Ether ETF applicants on May 20 to speed up their 19b-4 filings.
John Glover, Chief Investment Officer at Ledn, was surprised to see how this speculation affected the price of Bitcoin.
“It makes total sense that ETH jumped higher on this news. “It is interesting to note that the SEC’s approval of ETH should have had no impact on BTC demand, so it has also driven up the price of BTC,” Glover told Cointelegraph.
Related: Short selling $1.4B worth of Bitcoin at risk of liquidation if BTC price reaches $74.3K
Glover predicted there could be some volatility before a new record is reached.
“I think the market will see some gains and the BTC price will decline from the $71,000 level in the next few days,” Glover said.
Despite the positive shift in market sentiment, cryptocurrency traders are bracing for a slight decline in Bitcoin price before continuing its upward trend, according to CoinGlass liquidation data.
Even a slight 1% surge to around $71,000 would result in liquidation of approximately $766.73 million in short positions. On the other hand, a 1% drop to around $69,400 would liquidate $101.54M in long positions.
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This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.
