The Bitcoin worth made a powerful 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 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 current publish on the X platform, Santiment pointed to a shift in buyers’ 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 newest worth 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 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 increased than what it seems to be now.
Supply: Santiment/X
FOMO, or “concern of lacking out,” is a phenomenon the place buyers rapidly buy in-demand property out of concern of lacking out on potential positive factors. Whereas it could possibly drive the asset to a better worth 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 wrong way of the gang’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 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 exhibits that current whale exercise may need triggered the bullish momentum.
In a current publish 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 buyers may need included ETF-associated addresses, the current spike in “balances for whale addresses” just isn’t ETF-related.
#Bitcoin whales accrued 47K $BTC up to now 24 hours. We’re getting into a brand new period. pic.twitter.com/SXgzToN8GU
— Ki Younger Ju (@ki_young_ju) Might 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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