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?

Bitcoin Crosses the $63,000 Mark Again

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.

Strong Fundamentals Outweigh Short-Term Doubts

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.

However, regulatory uncertainties continue to weigh on the market. In the United States, the SEC has been slow to decide on the many Ethereum ETF proposals submitted in recent months. An approval could act as a strong bullish catalyst.

While it’s too early to speak of a new bull run, Bitcoin is showing encouraging signs in the short term. The next major resistance now stands at $65,000. Breaching this threshold would be a positive signal for the continuation. However, investors will need to remain alert to the numerous regulatory headwinds shaking the market.