
After several days of correction, the price of Bitcoin rebounded above $63,000 this Friday. Short sellers paid the price, with more than $26 million in short positions liquidated in just 4 hours. Are we witnessing the beginnings of a new bullish cycle?
Bitcoin crosses the $63,000 mark again
Despite a mixed month of April, marked by a drop below $60,000, Bitcoin seems on track to start the month of May on the right foot. The crypto-queen actually recorded an increase of 4.5% in 24 hours, reaching a peak at $63,107 on Saturday morning.
This bullish move surprised many bearish traders. According to data of Coinglass, the equivalent of $26.65 million in short positions were liquidated in just 4 hours. In total, nearly 50,000 traders were caught wrong-footing the market.
Bullish sentiment now appears to prevail in the Bitcoin options market. Data from the Deribit platform reveals a put/call ratio (put options/call options) of only 0.5, with a max pain (maximum pain point) located at $61,000. These technical indicators argue in favor of a continuation of the upward trend.
Strong fundamentals trump short-term doubts
Beyond the technical aspects, the fundamentals of Bitcoin remain solid. Adoption continues to grow, as evidenced by the recent launch of Bitcoin ETFs in Hong Kong.
However, regulatory uncertainties continue to weigh on the market. In the United States, the SEC is slow to rule on the numerous Ethereum ETF projects filed in recent months. An approval could act as a powerful bullish catalyst.
Even if it is too early to talk about a new bull run, Bitcoin is showing encouraging signs in the short term. The next major resistance now sits at $65,000. Exceeding this threshold would constitute a positive signal for the future. However, investors will need to remain attentive to the many regulatory headwinds buffeting the market.
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