On May 9, Bitcoin demonstrated a remarkable increase of 4.3%, breaking the $100,000 barrier for the first time since February. This resurgence signals renewed investor interest and has triggered significant liquidations in short positions amounting to approximately $800 million, the largest since 2021.
The ascent of Bitcoin’s price can be attributed to a fresh liquidity cascade. During the late New York trading session on May 8, the BTC/USD pair peaked at $104,150, suggesting an optimistic atmosphere within the crypto market. The Crypto Fear & Greed Index also reflects this sentiment, climbing from 65 to 73 in just 24 hours, indicating heightened greed among investors.
Over the last 24 hours, cryptocurrency market liquidations exceeded $925 million, initiating serious turmoil especially amongst short sellers. Notably, various resistance levels are observed above the current spot price, with $2.85 billion in ask-orders accumulated close to the all-time high of $109,500. These figures indicate potential for further upward movement in the immediate term, although analysts caution about ‘overbought conditions’ identified through the relative strength index (RSI).
Despite these indicators, strong support from moving averages persists. Analysts have set ambitious targets for Bitcoin, with several indicating a potential trajectory toward $106,000 and beyond. The technical analysis shared by prominent figures in the trading community suggests that Bitcoin’s recent momentum is poised for a sustained upward trend.
Additionally, crypto trader predictions have soared, with some analysts forecasting Bitcoin could reach between $500,000 and $1 million by the end of the current market cycle, driven by factors like increased institutional adoption and a favorable regulatory environment in the U.S.
Bitcoin’s current price action has also formed a bull flag pattern on the weekly chart, which is viewed as a bullish setup indicative of future price increases. The target set by this technical setup is approximately $182,200, presenting a 75% gain potential from current levels.
In conclusion, while the recent Bitcoin rally signifies a strong bullish momentum, potential investors should remain vigilant and conduct thorough research. As market dynamics continue to evolve, staying informed will be crucial to capitalizing on opportunities in the cryptocurrency landscape.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
