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After several days of correction, Bitcoin price rebounded above $63,000 this Friday. Short sellers paid the price, with over $26 million worth of short positions liquidated in just four hours. Are we witnessing the beginning of a new bullish cycle?
Bitcoin crosses $63,000 level again
After a mixed April that saw it drop below $60,000, Bitcoin appears poised to start May on the right foot. In fact, the queen of cryptocurrencies recorded a 4.5% gain in 24 hours, reaching a peak of $63,107 on Saturday morning.
This bullish move caught many bearish traders off guard. According to Coinglass data, only $26.65 million worth of short positions were liquidated within four hours. In total, nearly 50,000 traders were caught offside in the market.
Bullish sentiment appears to be prevailing in the Bitcoin options market at the moment. According to data from the Deribit platform, the put/call ratio (put option to call option) is only 0.5 and the maximum pain (point of maximum pain) is at $61,000. These technical indicators support the continuation of the bullish trend.
Solid fundamentals outweigh short-term doubts
Beyond the technical aspects, Bitcoin's fundamentals remain solid. Adoption continues to advance, as evidenced by the recent launch of a Bitcoin ETF in Hong Kong.
However, regulatory uncertainty continues to weigh on the market. In the US, the SEC has been slow to issue decisions on a number of Ethereum ETF proposals submitted in recent months. Approval could act as a powerful bullish catalyst.
Although it is too early to talk about a new bull market, Bitcoin is showing positive signs in the short term. The next major resistance level is currently located at $65,000. Crossing this threshold is a positive signal to continue. However, investors need to remain wary of the numerous regulatory headwinds shaking the market.
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Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
