Bitcoin has experienced a significant surge of 14% in the past week, leading traders to believe that it could be a genuine market pump. Traders do not anticipate another correction until the price reaches $90,000.
One pseudonymous crypto trader, known as “Roman,” expressed their belief that this surge is indeed a real market pump, citing the convergence of both fundamental and technical factors. They argued that the price decline from Bitcoin’s all-time high to its recent drop of 21% was a necessary correction for future price increases.
Roman pointed to a bullish reversal pattern on the Bitcoin price chart as evidence that the cryptocurrency will not enter another consolidation period until it surpasses its previous all-time high by at least 20%. They confidently stated that Bitcoin could reach $90,000 to $100,000 before experiencing any further consolidation or correction.
The bullish reversal pattern was evident in a spinning top candlestick that appeared near the bottom of the downtrend on May 20, with a closing price of $66,278. At the time of writing, Bitcoin was trading at $70,140.
This recent surge in Bitcoin’s price coincides with speculation surrounding the approval of spot Ether exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC). The market sentiment has become more positive as a result, with the Crypto Fear and Greed Index increasing by 12 points in just 24 hours, reaching an “Extreme Greed” score of 76 on May 21.
Reports that the SEC has urged Ether ETF applicants to expedite their filings further fueled the positive sentiment. However, some analysts were surprised to see Bitcoin’s price rise alongside Ether, as they believed that an SEC approval for Ether should not impact Bitcoin demand.
Despite the positive shift in market sentiment, traders are preparing for a slight dip in Bitcoin’s price before it continues its upward trend. CoinGlass liquidation data suggests that even a 1% spike to around $71,000 could result in the liquidation of around $766.73 million in short positions, while a 1% drop to approximately $69,400 would clear $101.54 million in long positions.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.