- Bitcoin’s recent 14% surge has traders convinced it’s the “real deal” market pump, with expectations of reaching $90,000 before any significant correction.
- Positive market sentiment, fueled by speculation of SEC approval for spot Ether ETFs, and technical indicators suggest continued bullish momentum for Bitcoin.
Bitcoin has experienced a notable 14% surge over the past week, leading traders to believe that this is the long-awaited “real deal” market pump. The recent price movement has fueled optimism among traders, with many expecting the cryptocurrency to reach as high as $90,000 before experiencing another significant correction.
The Bullish Sentiment Explained
Pseudonymous crypto trader “Roman” shared their insights with Cointelegraph, emphasizing that both fundamental and technical indicators are aligning to support this bullish outlook. Roman highlighted that the recent decline from Bitcoin’s all-time high of around $73,738 to $58,000 was a crucial correction, setting the stage for higher prices in the future.
Roman pointed out a “bullish reversal pattern” observed on Bitcoin’s price chart, marked by a spinning top candlestick near the downtrend’s bottom on May 20, closing at $66,278. This pattern, along with other technical indicators, suggests that Bitcoin won’t enter another consolidation phase until it surpasses its previous all-time high by at least 20%.
“I think we will move to at least $90,000-$100,000 before we see another consolidation period or correction,” Roman confidently stated.
Market Sentiment and Speculation
The recent price spike has coincided with increased speculation regarding the United States Securities and Exchange Commission’s (SEC) potential approval of spot Ether exchange-traded funds (ETFs). This speculation has significantly boosted market sentiment, as evidenced by the Crypto Fear and Greed Index, which jumped 12 points in 24 hours to reach an “Extreme Greed” score of 76 on May 21.
Reports suggest that the SEC has urged Ether ETF applicants to expedite their 19b-4 filings, which has positively influenced market sentiment. Ledn’s chief investment officer, John Glover, noted the surprising impact of this speculation on Bitcoin’s price, despite the fact that an SEC approval for Ether should theoretically have no direct effect on Bitcoin demand.
“It makes complete sense that ETH jumped higher on this news; it is interesting to me that this brought BTC price up along with it as there should be zero impact on BTC demand from an SEC approval for ETH,” Glover told Cointelegraph.
Volatility and Profit-Taking
Despite the overall positive sentiment, Glover anticipated some market volatility, expecting profit-taking activities to push Bitcoin prices down from the $71,000 level in the coming days. CoinGlass liquidation data supports this, showing that even a slight 1% spike to approximately $71,000 would result in significant short position liquidations, while a 1% drop to about $69,400 would clear a substantial amount of long positions.
While the market is currently buoyant with optimism and positive sentiment, traders are prepared for some short-term volatility before Bitcoin continues its upward trajectory towards the anticipated $90,000 milestone.
