Bitcoin’s recent surge of 14% has convinced traders that it could be a significant market pump, leading to expectations that another correction won’t occur until it reaches $90,000. According to a pseudonymous crypto trader named “Roman,” the fundamentals and technicals of Bitcoin are aligning, indicating that this surge is the real deal. Roman believes that the price decline from its all-time high to $58,000 was a necessary correction for higher prices in the future. They point to a bullish reversal pattern on the Bitcoin price chart as evidence that the cryptocurrency won’t enter another consolidation period until it surpasses its previous all-time high by at least 20%. Roman predicts that Bitcoin will reach $90,000 to $100,000 before experiencing another correction.
The bullish reversal pattern was indicated by a spinning top candlestick on May 20, which closed at $66,278. As of now, Bitcoin is trading at $70,140. This recent price spike comes at a time when there is speculation that the SEC might approve spot Ether exchange-traded funds (ETFs). This speculation has positively impacted market sentiment, with the Crypto Fear and Greed Index reaching an “Extreme Greed” score of 76 on May 21. The SEC’s urging of Ether ETF applicants to speed up their filings also contributed to this positive sentiment. However, John Glover, the chief investment officer of Ledn, was surprised that this speculation affected Bitcoin’s price, as he believes there should be no impact on BTC demand from an SEC approval for ETH.
Despite the positive market sentiment, crypto 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 $71,000 would result in significant liquidations of short positions, while a 1% drop to $69,400 would clear long positions. Overall, while the market remains optimistic, traders are cautious and anticipate some volatility before Bitcoin reaches new record highs. It is important to note that this article does not provide investment advice, and readers should conduct their own research before making any decisions.