Bitcoin Smashes Through $50,000 Milestone Amid Rising FOMO! Will Bulls Hold $50K Or Trigger A Correction?
The post Bitcoin Smashes Through $50,000 Milestone Amid Rising FOMO! Will Bulls Hold $50K Or Trigger A Correction? appeared first on Coinpedia Fintech News
After going through a prolonged bear market and tumbling investor faith, Bitcoin is on the edge of a robust comeback. In the past few hours, the BTC price has surged impressively from a low of $47,500, reaching the eagerly awaited $50,000 milestone, due to substantial inflows into Bitcoin ETFs over the last week. This influx has skyrocketed market confidence. Yet, amidst this rally, there’s speculation among analysts about the continuity of this surge, given the possibility of a large-scale sell-off by numerous holders poised to cash in on their profits.
Bitcoin Sees Billions In ETF Inflows
Although Bitcoin remains below its 2021 high of nearly $69,000, it has been on an upward trajectory, even amid corrections influenced by ETF activity. This week, it broke through the $48,000 and $49,000 marks, reaching heights not seen in almost two years. Now, it has broken above the much-anticipated $50K mark, aiming to touch its ATH this year.
In the past hour, the Bitcoin market experienced a significant shakeout, with total liquidations amounting to approximately $25.3 million. Of this, sellers saw around $24.5 million of their positions cleared.
The recent uptick in Bitcoin’s price is supported by a significant influx of funds into spot Bitcoin ETFs last week, with more than $1.1 billion in new funds entering the market. This surge comes as the outflows from established funds, like the Grayscale Bitcoin Trust (GBTC) and ProShares’ futures-based ETF, begin to decelerate.
Analysts and market experts are forecasting a climb above $50,000 and potentially reaching a new peak before the halving event, which is now just over 65 days away.
The mood regarding Bitcoin hovering around the $50,000 mark is divided, with several analysts eyeing correction as short-term holders set to liquidate.
Surpassing specific technical barriers, like the Fibonacci retracement level around $51.2K, might trigger additional surges. Nonetheless, the market needs to prepare for different outcomes, including possible retracements to retest support zones as long-squeeze could be triggered anytime.
Bitcoin’s Correction Begins With Rising Sell Volume
Bitcoin is witnessing a correction as sellers increasingly opened short-positions at around $49,994-$49,999, triggering a minor pullback toward $49,400. However, Coinbase data shows that the BTC price touched the $50K mark before a correction.
In November 2021, during the previous bull market, Bitcoin reached its peak value of $69,044. The total market capitalization of all cryptocurrencies exceeded $3 trillion at that time. As of the latest update, the global cryptocurrency market capitalization stands at $1.9 trillion.
In recent minutes, the BTC price has seen a decrease in its long/short ratio, falling below 1 to stand at 0.8349. This indicates that selling volume is surpassing buying activity, as a greater number of traders are initiating short positions in anticipation of a price adjustment from the $50K high. At present, 54.5% of all positions are betting on a price drop, whereas 45.5% are forecasting a rise in price.
