Bitcoin Back Above $63,000: Will FOMO Fuel Another Rally Or Lead To A Bust?
04 Mai 2024 - 8:25AM
NEWSBTC
The Bitcoin price made a strong comeback on Friday after witnessing
a significant amount of bearish pressure throughout the past week.
On Wednesday, May 1, the premier cryptocurrency fell below the
$60,000 mark for the first time in almost two months. On Friday,
May 3, the price of BTC recovered above the $60,000 level, going as
high as $63,000 in the past day. However, the question is – can the
Bitcoin price enjoy a sustained rally following this latest
resurgence? How Long Will The BTC Price Rally Last? In a recent
post on the X platform, Santiment pointed to a shift in investors’
position and sentiment on the Bitcoin price following the recent
surge above $62,000. According to the on-chain analytics site,
traders on the Binance platform are “going from liquidated shorts
to longs” after the latest price increase. Related Reading: Shiba
Inu Stands Strong: Over 650K Wallet Addresses Still Profitable Amid
Recent Price Drop While this shift in sentiment might signal
renewed optimism in the premier cryptocurrency, Santiment sounded a
warning bell for enthusiasts watching the Bitcoin price and looking
to get into the market. The blockchain firm said in its post:
For the rally to continue, we don’t want to see FOMO rising too
much higher than what it appears to be now. Source: Santiment/X
FOMO, or “fear of missing out,” is a phenomenon where investors
hastily purchase in-demand assets out of fear of missing out on
potential gains. While it can drive the asset to a higher price in
the short term, excessive FOMO often results in unsustainable
bullish trends and subsequent downturns. What’s more, crypto prices
tend to move in the opposite direction of the crowd’s expectations.
Hence, if the majority of traders are betting on the Bitcoin price
to rise, there is a great likelihood that the cryptocurrency’s
value will experience a drop. Behind The Bitcoin Price Surge As of
this writing, the Bitcoin price stands at around $62,871,
reflecting a substantial 6% increase in the last 24 hours. Although
the catalyst for this latest Bitcoin rally remains unclear,
on-chain data shows that recent whale activity might have triggered
the bullish momentum. Related Reading: Crypto Expert Turns Bullish
On Bitcoin, Predicts Quantitative Easing Will Begin Soon In a
recent post on X, CryptoQuant CEO and founder Ki Young Ju revealed
that Bitcoin whales acquired 47,000 BTC in a single day. Ju also
said that while this class of investors might have included
ETF-associated addresses, the recent spike in “balances for whale
addresses” is not ETF-related. #Bitcoin whales accumulated 47K $BTC
in the past 24 hours. We’re entering a new era.
pic.twitter.com/SXgzToN8GU — Ki Young Ju (@ki_young_ju) May 3, 2024
Bitcoin price fails to hold above $63,000 on the daily timeframe |
Source: BTCUSDT chart from TradingView Featured image from iStock,
chart from TradingView
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