Bitcoin‘s recent 14% rise has sparked fresh optimism among investors, many of whom believe that the cryptocurrency could trigger a substantial market rally. Despite a 21% drop from its all-time high of $73,738 on May 2, analysts predict that Bitcoin won’t undergo another correction until it reaches between $90,000 and $100,000. This anticipated surge is attributed to several factors, including a bullish reversal pattern and potential regulatory actions in the cryptocurrency market.
Why is Bitcoin Rising?
Prominent analyst Roman has highlighted a bullish reversal pattern in Bitcoin’s price chart as a significant indicator of future growth. He suggests that another consolidation phase is unlikely until Bitcoin surpasses its previous high by 20%. Roman confidently states that Bitcoin will reach at least $90,000 to $100,000 before experiencing another period of consolidation or correction.
Currently, Bitcoin is trading at around $69,797, following a bullish trend that saw it close at $66,278 on May 20. This upward trajectory aligns with heightened speculation about the U.S. Securities and Exchange Commission (SEC) possibly approving spot Ethereum exchange-traded funds (ETFs), boosting market sentiment.
ETH ETF News and Market Dynamics
The optimistic market sentiment was further fueled by news that the SEC urged Ethereum ETF applicants to expedite their filings. John Glover, Chief Investment Officer at Ledn, expressed surprise at how speculation had influenced Bitcoin’s price. He noted that while Ethereum should naturally benefit from this news, it was unexpected to see a corresponding rise in Bitcoin’s value.
Glover anticipates some profit-taking in the market, which could temporarily lower Bitcoin’s price to around $71,000. CoinGlass data supports this view, indicating that investors are bracing for minor volatility before the overall bullish trend continues.
Key Takeaways
- Bitcoin is expected to reach $90,000-$100,000 before the next consolidation phase.
- Market sentiment is positively influenced by the SEC’s actions regarding Ethereum ETFs.
- Short and long positions in the market are sensitive to even minor fluctuations in Bitcoin’s price.
Despite recent gains, investors should remain cautious as profit-taking could lead to temporary price adjustments. However, the overall outlook remains bullish, with significant gains predicted for the near future.