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Bitcoin‘s 14% increase last week convinced investors it could trigger a market rise; many analysts do not expect another correction up to $90,000. Bitcoin’s price drop from an all-time high of $73,738 on May 2 to $58,000, a 21% decrease, could be a much-needed correction for higher future prices.
Why is Bitcoin Rising?
Analyst and investor Roman noted that the bullish reversal pattern seen in Bitcoin’s price chart this week is a strong indicator that Bitcoin will not fall into another consolidation period until it surpasses the all-time high of $73,679 on March 12 by at least 20%. The renowned figure commented:
“I think we will reach at least $90,000-100,000 before seeing another consolidation or correction.”
According to CoinMarketCap data, the bullish reversal pattern closed at $66,278 on May 20, near the bottom of the downtrend. At the time of writing, Bitcoin was trading at $69,797.
Bitcoin‘s recent price increase emerged during a period of heightened speculation that the United States Securities and Exchange Commission might move to approve spot Ethereum exchange-traded funds; a topic analysts and the broader community have been skeptical about for the past few weeks. As a result, market sentiment made a positive turn; the Crypto Fear and Greed Index rose 12 points in just 24 hours, reaching a score of 76, indicating Extreme Greed on May 21.
ETH ETF News and Market Dynamics
The increase in positive sentiment came after news that the SEC called on Ethereum ETF applicants to expedite their 19b-4 filings on May 20. Ledn Chief Investment Officer John Glover was surprised by how speculation affected Bitcoin’s price and commented:
“It makes perfect sense for Ethereum to rise more on this news. It is interesting that this also boosts Bitcoin’s price since SEC’s Ethereum approval should have zero impact on Bitcoin demand.”
Glover predicted some volatility before reaching new record levels and shared the following statements on the matter:
“I anticipate some profit-taking in the market, which will pull Bitcoin’s price down to $71,000 in the coming days.”
CoinGlass data suggests that despite the positive change in market sentiment, crypto investors are preparing for a slight drop in Bitcoin’s price before continuing the bullish trend. Even a slight 1% increase to around $71,000 could wipe out approximately $766.73 million in short position liquidations from the market. On the other hand, a 1% drop to around $69,400 could erase $101.54 million in long positions from the market.
