Bitcoin Reclaims $100k Psychological Milestone, Reflecting Renewed Bullish Sentiment

Bitcoin has reclaimed the psychological milestone of $100,000, reflecting renewed bullish sentiment but also prompting caution among analysts.

Bitcoin price has breached the psychological milestone of $100,000, showcasing renewed bullish sentiment but also prompting caution among analysts.

May 8 saw the leading cryptocurrency peak at $104,000, marking a significant move above the key six-figure level.

However, despite the bullish momentum, some market observers are remaining vigilant about the sustainability of the uptrend.

One Rekt Capital analyst, known for their technical analysis on the 1-week chart of BTC/USD, highlighted two critical points from the current situation:

An analyst at Rekt Capital is highlighting two key points about the current #BTC chart in a new analysis.

"We never completed the 5th wave of this cycle from the 2024 lows. It seems like it's getting sliced up like a salami on lower timeframes. But we did get 3 good touches on the Fib level.

We also aren't seeing any signs of buyers getting tired yet. Quite the opposite. They keep pushing price higher despite the sellers' attempts to defend. This shows strength from the buyers' side."

One way to view the current slice of the 4th quarter-リーl 1W chart of $BTC.

Another trader, Keith Alan, co-founder of trading resource Material Indicators, noted that recent rallies have been accompanied by declining volume and repeated wicks below the yearly open, suggesting more caution is warranted.

Alan further stated:

"For me, a pump above $95k would invalidate the new signal, but I’d probably consider such a move to be a short squeeze unless we have a catalyst with some substance behind it.

We’re getting a retest of the support around the $98k zone which would be more constructive for confirming a reversal than just slicing through the $100k. If successful, I would like to see a move above $100k and some consolidation with multiple support retests to confirm a reversal above $100k before the next macro move to new price highs.

Unfortunately, the market gives exactly zero ‘care’ about what I would like to see, so I will continue to watch the charts and trade what I see in front of me.”

Network Activity and FOMO

In other developments, there has been a surge in new Bitcoin network activity amid the renewed price rally, indicating heightened retail interest and potential FOMO.

Analytics firm Santiment reported a significant spike in the creation of new wallets.

One way to view the current slice of the 4th quarter-l 1W chart of $BTC.

As the asset with the largest market capitalization in the crypto sector reached a high of approximately $103,800, it appeared to be silencing some bearish voices for now.

Ethereum's Price Action and Market Context

Sticking with the market action, we can add that Ethereum also displayed upward momentum, though not as dramatically as described in the original article.

While Ethereum did see a surge in early May as it moved above $2,400 to hit a high of $2,451, the reported 35% rally from $1,800 and a price of $2,451 on May 8 are not entirely accurate.

Relative to April lows, Ethereum’s gains were around 25%, and the reported price point of $2,451 was reached earlier in the day, with prices later pulling back below that level.

The rally in Ethereum was seen as being driven by a combination of factors, including broader crypto market strength and technical updates.

However, it’s not directly linked to the U.S.-U.K. trade deal or the acquisition of Deribit by Coinbase, events more closely tied to Bitcoin’s performance.

Also, despite Ethereum’s price gains, spot Ethereum ETFs continued to see outflows, with $16.1 million withdrawn from the products on May 8. This marks the third consecutive day of outflows from the products.

The price move caught many traders unprepared, resulting in the liquidation of over $390 million in short positions on Ethereum in the past 24 hours.

Crypto trader Alex Krüger highlighted that the rapid increase in Ethereum’s price was mainly driven by the opening of new long positions. This stands in contrast to Bitcoin’s rally, which Krüger attributes to the closing of shorts.

Further noting the large-scale liquidation of short positions on Ethereum, Krüger remarked that, “Everyone's getting rekt and bankrupt. Enjoy.”

Another trader, Bob Loukas, weighed in on the broader market trends, suggesting that the broader market put in a "macro triple bottom" in November 2024, and now it seems like the "bulls are putting in a triple top."

Moreover, Loukas pointed out that there has been a "