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\n\t\t\t\t\t\t\t\t\t“The downtrend has ended, and a new uptrend is ongoing,” one analyst suggested.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
The primary cryptocurrency has posted a 6% price increase over the past week, and now many analysts believe a further ascent could be on the way.<\/p>\n
However, a number of warning signs suggest a short-term correction remains just as plausible.<\/p>\n
Bitcoin has been gradually rising over the last several days, briefly touching<\/a> $83,000 on May 6 before reversing to the current $81,000 (according to CoinGecko). Its resurgence comes on the back of a broader market revival triggered by the recent peace talks between the USA and Iran, among other factors.<\/p>\n Numerous industry participants are optimistic that BTC\u2019s rally is nowhere near its end, with John Bollinger joining the discussion. The legendary technical analyst revealed<\/a> that his fund\u2019s \u201cTactica\u201d program has opened a new position and is now \u201cfully invested\u201d in the cryptocurrency after the trend model turned positive.<\/p>\n This method is used at Bollinger Capital Management as a systematic allocation tool, automatically adjusting the entity\u2019s exposure based on predefined signals.<\/p>\n The analyst is better known for developing the Bollinger Bands indicator, which consists of a moving average with an upper and lower band that expand and contract based on market turbulence. Some X users noted<\/a> that, towards the end of April, these channels squeezed as never before on a monthly basis, which is usually a precursor to a big price swing.<\/p>\n Other market observers who have touched upon BTC\u2019s performance lately include CW and Aman. The former argued<\/a> that the asset has begun \u201ca full-cycle rise after completing a retest following a convergence breakout.\u201d<\/p>\n \u201cThe downtrend has ended, and a new uptrend is ongoing,\u201d they added.<\/p>\n<\/blockquote>\n For their part, Aman wondered<\/a> if BTC is ready to \u201cvaporize\u201d the $86K wall. The analyst claimed that the price has entered a specific zone where the big players will decide the trend.<\/p>\n It is important to note that some industry participants expect the recent upswing to be abruptly replaced by a major pullback. X user Chiefy, for instance, described<\/a> the current development as \u201cthe biggest Bitcoin bull trap of this cycle,\u201d envisioning a collapse to as low as $42,000.<\/p>\n At the same time, the asset\u2019s social sentiment has jumped sharply, with Santiment showing<\/a> a 1.37 bullish versus 1.00 bearish ratio \u2013 the most optimistic reading in nearly four months. While this surge in confidence highlights growing trader enthusiasm, it can actually be a bearish sign, as the crypto market tends to move against the crowd\u2019s expectations.<\/p>\n The ratio of leveraged positions also displays the reigning optimism among market participants, which could serve as another warning signal. According to X user Ted, longs have outnumbered<\/a> shorts by about 11 to 1.<\/p>\nYou may also like:<\/h3>\n
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The Biggest Bull Trap?<\/h2>\n