Bitcoin’s recent surge of 14% has convinced traders that it could be a significant market pump, with another correction not expected until it reaches $90,000. A pseudonymous crypto trader named “Roman” expressed their belief that this surge is the real deal, citing the confluence of fundamentals and technicals. They explained that the price decline from Bitcoin’s all-time high to a 21% drop in May was a necessary correction for higher prices in the future.
Roman pointed to a bullish reversal pattern on the Bitcoin price chart as evidence that it won’t enter another consolidation period until it surpasses its previous all-time high by at least 20%. They confidently stated that Bitcoin will likely reach $90,000 to $100,000 before experiencing another consolidation or correction.
The bullish reversal pattern was indicated by a spinning top candlestick near the downtrend’s bottom on May 20, closing at $66,278. At the time of writing, Bitcoin was trading at $70,140.
Bitcoin’s recent price spike coincided with speculation surrounding the approval of spot Ether exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC). This speculation has been doubted in recent weeks. However, the market sentiment turned positive after reports that the SEC urged Ether ETF applicants to expedite their filings.
The positive sentiment spike caused the Crypto Fear and Greed Index to shoot up by 12 points in just 24 hours, reaching an “Extreme Greed” score of 76 on May 21. While some analysts were surprised by the impact of this news on Bitcoin’s price, others anticipated some volatility before reaching new record highs. They expect some profit-taking in the market, which could push Bitcoin’s price down from the $71,000 level in the coming days.
Despite the positive market sentiment, traders are preparing for a slight dip in Bitcoin’s price before it continues its upward trend, according to CoinGlass liquidation data. Even a small 1% spike to approximately $71,000 would result in significant liquidations of short positions, while a 1% drop to about $69,400 would clear long positions. It’s important to note that this article does not provide investment advice and readers should conduct their own research before making any decisions.