Bitcoin price made a strong comeback on Friday after witnessing significant bearish pressure over the past week. On Wednesday, May 1, the leading cryptocurrency fell below $60,000 for the first time in almost two months.
On Friday, May 3, the BTC price returned above the $60,000 level, reaching $63,000 the day before. However, the question is: can the price of Bitcoin see a sustainable rise after this latest resurgence?
How long will the BTC price rise last?
In a recent post on the platform, Santiment highlighted a change in investors' stance and sentiment towards the price of Bitcoin following the recent rise above $62,000. According to the on-chain analytics site, traders on the Binance platform are “moving from liquidated short positions to long positions” after the latest price increase.
While this change in sentiment may signal renewed optimism about the premier cryptocurrency, Santiment has sounded a wake-up call for enthusiasts monitoring the price of Bitcoin and looking to enter the market. The blockchain company said in its post:
For the rally to continue, we don't want to see FOMO rise too high from where it currently appears to be.
Source: Santiment/X
FOMO, or “fear of missing out,” is a phenomenon in which investors hastily buy in-demand assets for fear of missing out on potential gains. Although it can drive the asset higher in price in the short term, excessive FOMO often leads to unsustainable uptrends and subsequent downturns.
Additionally, cryptocurrency prices tend to move in the opposite direction to public expectations. Therefore, if the majority of traders are betting on a rise in the price of Bitcoin, there is a good chance that the value of the cryptocurrency will see a decline.
Behind the Bitcoin Price Surge
At the time of writing, the Bitcoin price stands at around $62,871, reflecting a substantial 6% increase over the past 24 hours. Although the catalyst for this latest Bitcoin rally remains unclear, on-chain data shows that recent whale activity may have sparked the bullish momentum.
In a recent post on, Ki Young Ju, CEO and founder of CryptoQuant, revealed that Bitcoin whales acquired 47,000 BTC in a single day. Ju also said that while this investor class could have included addresses associated with the ETF, the recent increase in “balances for whale addresses” is not linked to the ETF.
#Bitcoin whales have accumulated 47K $BTC in the last 24 hours. We are 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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