Bitcoin price made a strong comeback on Friday after seeing a significant amount of downward pressure throughout the past week. On Wednesday, May 1, the major cryptocurrency fell below the $60,000 level for the first time in almost two months.
On Friday, May 3, Bitcoin price rebounded above the $60,000 level, reaching $63,000 in the past day. However, the question is – can Bitcoin price enjoy a sustained rise after this latest surge?
How long will BTC prices continue to rise?
at recent days Share on X platform, Santiment noted a shift in investor attitude and sentiment regarding the Bitcoin price following the recent surge above $62,000. According to the on-chain analytics site, traders on Binance are “moving from liquidated short positions to long positions” following the recent price increase.
While this shift in sentiment may signal renewed optimism in the leading cryptocurrency, Santiment has sounded a warning bell 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 much higher than it appears to be now.
Source: Santiment/X
FOMO, or “fear of missing out,” is a phenomenon where investors purchase in-demand assets in a hurry for fear of missing out on potential gains. While it can push the asset to a higher price in the short term, excessive FOMO often leads to unsustainable uptrends and subsequent downturns.
Moreover, cryptocurrency prices tend to move in the opposite direction to public expectations. Therefore, if the majority of traders are betting on the price of Bitcoin rising, there is a high probability that the value of the cryptocurrency will see a decline.
Behind the rise in Bitcoin prices
As of this writing, Bitcoin's price is around $62,871, reflecting a significant 6% increase over the past 24 hours. Although the catalyst for Bitcoin's recent rally remains unclear, on-chain data shows that recent whale activity may have sparked bullish momentum.
at recent days Share on XCryptoQuant CEO and founder, Ki Young Joo, revealed that Bitcoin whales acquired 47,000 Bitcoin in one day. Joe also said that while this category of investors may have listed addresses linked to ETFs, the recent rise in “whale address balances” is not related to ETFs.
#Bitcoin Whales accumulated 47 thousand $ Bitcoin 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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