The Bitcoin value made a powerful comeback on Friday after witnessing a big quantity of bearish stress all through the previous week. On Wednesday, May 1, the premier cryptocurrency fell below the $60,000 mark for the primary time in nearly two months.
On Friday, May 3, the value of BTC recovered above the $60,000 degree, going as excessive as $63,000 previously day. However, the query is – can the Bitcoin value get pleasure from a sustained rally following this newest resurgence?
How Long Will The BTC Price Rally Last?
In a current post on the X platform, Santiment pointed to a shift in buyers’ place and sentiment on the Bitcoin value following the current surge above $62,000. According to the on-chain analytics website, merchants on the Binance platform are “going from liquidated shorts to longs” after the most recent value enhance.
While this shift in sentiment may sign renewed optimism within the premier cryptocurrency, Santiment sounded a warning bell for lovers 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 need to see FOMO rising an excessive amount of increased than what it seems to be now.
Source: Santiment/X
FOMO, or “fear of missing out,” is a phenomenon the place buyers swiftly buy in-demand property out of worry of lacking out on potential features. While it will probably drive the asset to a better value within the brief time period, extreme FOMO usually leads to unsustainable bullish traits and subsequent downturns.
What’s extra, crypto costs have a tendency to maneuver in the other way of the gang’s expectations. Hence, if the vast majority of merchants are betting on the Bitcoin value to rise, there’s a nice chance that the cryptocurrency’s worth will expertise a drop.
Behind The Bitcoin Price Surge
As of this writing, the Bitcoin value stands at round $62,871, reflecting a considerable 6% enhance within the final 24 hours. Although the catalyst for this newest Bitcoin rally stays unclear, on-chain information reveals that current whale exercise might need triggered the bullish momentum.
In a current post on X, CryptoQuant CEO and founder Ki Young Ju revealed that Bitcoin whales acquired 47,000 BTC in a single day. Ju additionally mentioned that whereas this class of buyers might need included ETF-associated addresses, the current spike in “balances for whale addresses” will not be ETF-related.
#Bitcoin whales collected 47K $BTC previously 24 hours. We’re coming into a brand new period. pic.twitter.com/SXgzToN8GU
— Ki Young Ju (@ki_young_ju) May 3, 2024
Bitcoin value fails to carry above $63,000 on the each day timeframe | Source: BTCUSDT chart from TradingView
Featured picture from iStock, chart from TradingView
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