Bitcoin’s 14% surge over the past week has convinced traders that it could be the “real deal market pump” — with another correction not expected until it reaches $90,000.
“I believe this is the “real deal market pump” as fundamentals and technicals are providing confluence,” pseudonymous crypto trader “Roman” told Cointelegraph.
They explained Bitcoin’s price decline from its all-time high of around $73,738 to a 21% drop to $58,000 on May 2, was a “much-needed correction for higher prices in the future.”
Roman pointed to the “bullish reversal pattern” seen on the Bitcoin (BTC) price chart this week as a strong indicator that it won’t drop into another consolidation period until it surpasses its March 12 all-time high of $73,679 by at least 20%.
“I think we will move to at least $90,000 to $100,000 before we see another consolidation period or correction,” they declared.
The bullish reversal pattern was signaled by a spinning top candlestick near the downtrend’s bottom on May 20, closing at $66,278, according to CoinMarketCap data.
Bitcoin was trading at $70,140 at the time of writing.
Bitcoin’s recent price spike comes amid heightened speculation the United States Securities and Exchange Commission (SEC) could be moving to approve spot Ether (ETH) exchange-traded funds (ETFs), which analysts and the broader community have doubted over the past few weeks.
The market sentiment took a positive turn as a result, with the Crypto Fear and Greed Index shooting up by 12 points in just 24 hours, reaching an “Extreme Greed” score of 76 on May 21.
The positive sentiment spike came after reports the SEC had urged Ether ETF applicants to speed up their 19b-4 filings on May 20.
Ledn chief investment officer John Glover was surprised at how the speculation impacted Bitcoin’s price.
“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.
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Glover anticipated there might be some volatility before reaching new record highs.
“I would guess we see some profit taking in the market, which will push BTC prices down from the $71,000 level in the coming days as well,” Glover said.
Despite the positive shift in market sentiment, crypto traders are bracing for a slight dip in Bitcoin’s price before it continues its upward trend, according to CoinGlass liquidation data.
Even a slight 1% spike to approximately $71,000 would wipe around $766.73 million in short position liquidations. On the flip side, a 1% drop to about $69,400 would clear $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 when making a decision.