Bitcoin is on the rise again, is this the start of the bull run?
The price of Bitcoin went down for a few days, but it went back up above $63,000 this Friday. People who were short on money paid the price. In just 4 hours, more than $26 million worth of short bets were closed. Are we now seeing the start of a new rising cycle?
April was a rough month for Bitcoin, with a drop below $60,000. However, it looks like May will be a good month to start. The crypto-queen actually went up by 4.5% in 24 hours, hitting a high point of $63,107 on Saturday morning.
Many negative traders were caught off guard by this move up. According to figures from Coinglass, short positions worth $26.65 million were closed in just 4 hours. Nearly 50,000 traders were found trying to time the market wrong.
The Bitcoin options market now seems to have a mostly positive attitude. Based on data from the Deribit website, the ratio of put options to call options is just 0.5, and the highest point of pain is $61,000. With these technical signs, there is a good chance that the upward trend will continue.
Brief doubts are less important than strong foundations.
The basics of Bitcoin are still strong, even when it comes to the technical side of things. The fact that Bitcoin ETFs were just launched in Hong Kong shows that adoption is still growing.
But legislative uncertainty is still making the market feel heavy. In the US, the SEC is taking a long time to decide on the many Ethereum ETF projects that have been filed in the past few months. An acceptance could be a strong force for the price to rise.
There are some good signs for Bitcoin in the short term, but it's still too early to call it a new bull run. At the moment, $65,000 is the next big test. If this level is broken, it would be a good sign for the future. Investors will need to keep an eye on the many regulatory hurdles that are hitting the market, though.