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Bitcoin (BTC) recently made a dramatic comeback into the $70k zone after a bullish reversal pattern was signalled by a spinning top candlestick closed to the downtrend’s bottom on May 20. However, the asset shed off some of its accumulated gains in a 2% daily decline to trade at $69k at press time.

According to our data, Bitcoin’s daily trading volume has also declined substantially by 22% with the market cap falling by 2% to reach $1.38 trillion. Unlike the 24-hour performance, Bitcoin has yielded 12% weekly profit for investors to extend its overall Return on Investment (ROI) to 113,008,315.63%.

With this happening, pseudonymous crypto trader “Roman” believes that the current price action could be a “real deal market pump” considering the fact that “fundamental and technical indicators are providing confluence.” As claimed by the analyst, the sharp decline by Bitcoin from its all-time high price of around $73,738 to $58,000 on May 2 was an important correction for higher prices in the future.

With the bottom already witnessed in the previous consolidation, Roman is certain that the bullish reversal shown in the current price chart is strong enough that consolidation would have no place in the ongoing cycle until it overtakes the March 12 all-time high of $73,679 by at least 20%. Per his observation, the next stop for Bitcoin is $90k and $100k. 

I think we will move to at least $90,000 to $100,000 before we see another consolidation period or correction.

Reason Behind the Bitcoin (BTC) Surge

According to market insiders, the recent spike was triggered by the ongoing speculations that the US Securities and Exchange Commission (SEC) could soon approve spot Ether Exchange-Traded Funds (ETFs). As reported by Crypto News Flash, Bloomberg analysts James Seyffart and Eric Balchunas revised their 25% odds for approval to 75%. Our research also discloses that their position alludes with that of another crypto ETF expert Nate Geraci who stated in a tweet that it is technically possible for the SEC to approve 19b-4s. 

SEC must approve both the 19b-4s (exchange rule changes) & S-1s (registration statements) for ETFs to launch. Technically possible for SEC to approve 19b-4s & then slow play S-1s (esp given reported lack of engagement here).

The positive sentiment also stems from a recent report that the SEC has urged Ether ETF applicants to speed up their 19b-4 filings on May 20. The impact on the Bitcoin price could be seen in the Crypto Fear and Greed Index which recorded a staggering increase by 12 points in just 24 hours. By May 21, the reading had reached an “Extreme Greed” score of 76.

According to Ledn chief investment officer John Glover, the impact of these speculations on the Bitcoin price is quite interesting. However, there could be some level of volatility before setting a new all-time high price. 

It makes complete sense that ETH jumped higher on this news; it is interesting to me that this brought BTC price up along with it as there should be zero impact on BTC demand from an SEC approval for ETH…I would guess we see some profit-taking in the market, which will push BTC prices down from the $71,000 level in the coming days as well.

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