Bitcoin is heading up again, is this the beginning of the bull run?
After several days of correction, the price of Bitcoin has bounced back above $63,000 this Friday. Short sellers paid the price, with more than $26 million worth of short positions liquidated in just 4 hours. Are we witnessing the beginnings of a new bullish cycle?
Despite a mixed April, marked by a dip below $60,000, Bitcoin seems well poised to start the month of May on the right foot. The crypto-queen indeed recorded an increase of 4.5% in 24 hours, reaching a peak of $63,107 on Saturday morning.
This bullish movement caught many bearish traders off guard. According to data from Coinglass, an equivalent of $26.65 million in short positions were liquidated within only 4 hours. In total, nearly 50,000 traders were caught offside by the market. The bullish sentiment now seems to prevail in the Bitcoin options market. Data from the Deribit platform reveals a put/call ratio (put options to call options) of only 0.5, with a max pain (point of maximum pain) located at $61,000. These technical indicators argue in favor of a continuation of the bullish trend. Beyond technical aspects, the fundamentals of Bitcoin remain solid. Adoption continues to progress, as evidenced by the recent launch of Bitcoin ETFs in Hong Kong.