Bitcoin (BTC), the leading cryptocurrency, is finally looking like itself again after slumps the past weeks and has seen a price level that has not been seen since mid-April after it reached a high of $58.4K.
But even with this kind of run, some traders and analysts are dubious about this rally.
According to on-chain metrics provider Santiment, “With Bitcoin bouncing back hard above $58.4k, traders are once again not believing the hype.”
Santiment pointed out that its sentiment data indicates “commentary is more negative than usual despite BTC’s highest price level since April 17th, ironically fueling prices higher.”
On April 23rd, Bitcoin price fell to lows of $48.5K following rumors that the administration of U.S. President Joe Biden will increase capital gains taxes. When such speculations broke out, the crypto market was affected, and the leading digital currency was not spared.
After that, Bitcoin slowly but surely clawed back up and now sees a two-week-high following its decline. The current surge in price is being linked to the tremendous outflow of BTC from crypto exchange Coinbase.
Also, last April 30th, $3.6 Bitcoin options were supposed to expire, providing speculators with the chance to either buy or sell BTC at a pre-determined price.
Bullish correction for Bitcoin
Market analyst Michael Van de Poppe said that the cryptocurrency is not in a bear market and is just on a bullish correction which will “make the crypto market explode.”
Since hitting its all-time high price of above $64,500, BTC has been consolidating, and this has been a perfect opportunity for whales to accumulate more Bitcoin. In fact, there are reports that they have added nearly 90,000 BTC to their portfolio after shelling out a whopping $4.92 billion.
Institutional Bitcoin adoption in Asia is also taking major steps forward, with the likes of Nexon, the biggest gaming company in South Korea, spending $100 million for Bitcoin purchase.
Image courtesy of Cointelegraph News/YouTube