Amidst growing FOMO, Bitcoin Breaks Through the $50,000 Milestone! Will the Market Hold $50K or Start a Cor…?
The article Bitcoin Breaks Through $50,000 Mark Amid Increasing FOMO! Will Bulls Hold $50K Or Cause An Adjustment? initially posted on Coinpedia Fintech News.
Following an extended period of decline and a decline in investor confidence, Bitcoin is poised for a strong resurgence. The price of bitcoin has risen dramatically over the last few hours from a low of $47,500 to the much-anticipated $50,000 milestone. This is mostly because of large inflows into Bitcoin ETFs over the course of the previous week. The inflow has caused market confidence to soar. However, given the likelihood of a significant correction, analysts are speculating as to whether this gain will continue.
Bitcoin Sees ETF Inflows of Billions
Despite being below its peak of around $69,000 in 2021, Bitcoin has remained rising, even during declines brought on by ETF activity. It surpassed the $48,000 and $49,000 thresholds this week, hitting levels not seen in nearly two years. It is currently striving to reach its ATH this year after breaking past the much anticipated $50K threshold.
The Bitcoin market saw a major shakeout in the last hour, with a total of almost $25.3 million being liquidated. About $24.5 million of the positions held by sellers were cleared of this.
A substantial inflow of capital into spot Bitcoin ETFs last week—more than $1.1 billion in fresh capital—supports the current surge in the price of the cryptocurrency. This increase coincides with a slowdown in withdrawals from well-known funds, such as the Grayscale Bitcoin Trust (GBTC) and ProShares’ futures-based ETF.
It is currently little over 65 days till the halves event, and analysts and financial professionals predict a rise beyond $50,000 and maybe a new top.
Divergent opinions exist about Bitcoin, which is currently trading at $50,000. Some analysts predict a correction as short-term investors prepare to sell.
Additional rallies could be sparked by breaking through certain technical obstacles, such as the Fibonacci retracement level at $51.2K. Nevertheless, given that a long-squeeze could occur at any time, the market must be ready for a variety of scenarios, including potential retracements to retest support zones.
Growing Sell Volume Signals the Start of Bitcoin’s Correction
A small decline towards $49,400 was caused by sellers opening more and more short positions at between $49,994 and $49,999, which is why bitcoin is undergoing a correction. Coinbase data, however, indicates that prior to a correction, the price of BTC reached the $50,000 threshold.
During the previous bull market, in November 2021, the value of Bitcoin peaked.of $69,044. At that point, the combined market value of all cryptocurrencies was more than $3 trillion. The market capitalization of cryptocurrencies worldwide as of the most recent report is $1.9 trillion.
The long/short ratio of the price of bitcoin has dropped in the last several minutes, now standing at 0.8349, below 1. This suggests that the volume of sales is bigger than the volume of purchases, since more traders are opening short positions in expectation of a price correction from the $50K high. Currently, 45.5% of all holdings anticipate a price increase, while 54.5% of all positions are betting on a price decline.