Key Points
- Bitcoin (BTC) soared above $70,000 on May 21, crushing short sellers.
- U.S. spot Bitcoin exchange-traded funds (ETFs) could have contributed to the surge.
Bitcoin, the world’s largest cryptocurrency, experienced a significant surge on May 21st, with its trading price rocketing past $70,000. This unexpected increase came about due to persistent bidding, leading to a swift rise in the value of Bitcoin.
Bitcoin’s Surprising Rise
The unexpected rally took many by surprise, as Bitcoin’s value was pushed close to $72,000. This sudden rise had a significant impact on short sellers, with data indicating that around $85 million worth of Bitcoin shorts were wiped out within 24 hours.
Statistician Willy Woo commented on the situation, noting that the bulls were challenging overhead resistance that had been in place for a month or more. He suggested that one more layer of resistance needed to be overcome to achieve an all-time high.
Predictions and Influences
Some predictions even suggested a potential rise to $100,000 if a breakout was completed on weekly timeframes. There were also suggestions that the U.S. spot Bitcoin exchange-traded funds (ETFs) could have played a part in this dramatic surge.
On the same day, Ethereum (ETH) also saw a significant rise, trading at nearly $3,700, an increase of 18% in 24 hours and 25% over the week.
However, despite the surge in demand, some traders maintained a conservative outlook. Notably, a popular trader and commentator, Credible Crypto, stressed that Bitcoin was facing “major resistance” and was likely to struggle to overcome it, at least for the time being.
At the time of writing, the area of thickest bid liquidity below the spot price was shown to be $70,630 according to CoinGlass.
