The Bitcoin worth made a powerful comeback on Friday after witnessing a big 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 worth of BTC recovered above the $60,000 degree, going as excessive as $63,000 up to now day. Nonetheless, the query is – can the Bitcoin worth take pleasure in a sustained rally following this newest resurgence?
How Lengthy Will The BTC Worth Rally Final?
In a latest put up on the X platform, Santiment pointed to a shift in traders’ place and sentiment on the Bitcoin worth following the latest surge above $62,000. Based on the on-chain analytics web site, merchants on the Binance platform are “going from liquidated shorts to longs” after the newest worth improve.
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 trying 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 “concern of lacking out,” is a phenomenon the place traders swiftly buy in-demand belongings out of concern of lacking out on potential beneficial properties. Whereas it will probably 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 other way of the gang’s expectations. Therefore, if nearly all of merchants are betting on the Bitcoin worth to rise, there’s a nice chance that the cryptocurrency’s worth will expertise a drop.
Behind The Bitcoin Worth Surge
As of this writing, the Bitcoin worth 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 reveals that latest whale exercise may need triggered the bullish momentum.
In a latest 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 latest spike in “balances for whale addresses” isn’t ETF-related.
#Bitcoin whales amassed 47K $BTC up 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 worth fails to carry above $63,000 on the each day timeframe | Supply: BTCUSDT chart from TradingView
Featured picture from iStock, chart from TradingView
Disclaimer: The article is supplied for academic functions solely. It doesn’t symbolize the opinions of NewsBTC on whether or not to purchase, promote or maintain any investments and naturally investing carries dangers. You might be suggested to conduct your individual analysis earlier than making any funding selections. Use data supplied on this web site fully at your individual danger.