The Bitcoin worth made a powerful comeback on Friday after witnessing a major quantity of bearish stress all through the previous week. On Wednesday, Might 1, the premier cryptocurrency fell beneath the $60,000 mark for the primary time in nearly two months.
On Friday, Might 3, the value of BTC recovered above the $60,000 degree, going as excessive as $63,000 previously day. Nonetheless, the query is – can the Bitcoin worth get pleasure from a sustained rally following this newest resurgence?
How Lengthy Will The BTC Value Rally Final?
In a current post on the X platform, Santiment pointed to a shift in traders’ place and sentiment on the Bitcoin worth following the current surge above $62,000. In line with the on-chain analytics website, merchants on the Binance platform are “going from liquidated shorts to longs” after the most recent worth enhance.
Whereas this shift in sentiment would possibly sign renewed optimism within the premier cryptocurrency, Santiment sounded a warning bell for fans watching the Bitcoin worth and seeking to get into the market. The blockchain agency mentioned in its publish:
For the rally to proceed, we don’t wish to see FOMO rising an excessive amount of larger than what it seems to be now.
Supply: Santiment/X
FOMO, or “worry of lacking out,” is a phenomenon the place traders swiftly buy in-demand property out of worry of lacking out on potential positive factors. Whereas it could drive the asset to a better worth within the brief time period, extreme FOMO usually leads to unsustainable bullish developments and subsequent downturns.
What’s extra, crypto costs have a tendency to maneuver in the wrong way of the group’s expectations. Therefore, if nearly all of merchants are betting on the Bitcoin worth to rise, there’s a nice probability that the cryptocurrency’s worth will expertise a drop.
Behind The Bitcoin Value Surge
As of this writing, the Bitcoin worth stands at round $62,871, reflecting a considerable 6% enhance within the final 24 hours. Though the catalyst for this newest Bitcoin rally stays unclear, on-chain knowledge exhibits that current whale exercise might need triggered the bullish momentum.
In a current post on X, CryptoQuant CEO and founder Ki Younger Ju revealed that Bitcoin whales acquired 47,000 BTC in a single day. Ju additionally mentioned that whereas this class of traders might need included ETF-associated addresses, the current spike in “balances for whale addresses” is just not ETF-related.
#Bitcoin whales collected 47K $BTC previously 24 hours. We’re getting into a brand new period. pic.twitter.com/SXgzToN8GU
— Ki Younger Ju (@ki_young_ju) May 3, 2024
Bitcoin worth fails to carry above $63,000 on the day by day timeframe | Supply: BTCUSDT chart from TradingView
Featured picture from iStock, chart from TradingView
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