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