Bitcoin [BTC] prices rallied 6.2%

On the 8th of May, Bitcoin’s [BTC] prices rallied 6.2% at press time, rising to $103.1k. This saw the sentiment across the crypto space flip bullish, and many altcoins registered double-digit gains.

Pudgy Penguins [PENGU], one such token, surged by 24.6% on the day, and could surpass the high it reached on the 28th of April.

PENGU recovers all losses of the past ten days

PENGU bulls showed sizeable strength as BTC prices rallied. The trading volume has been high over the past two wees as the memecoin established a bullish structure.

The price gains on the 8th of May also came alongside heavy trading volume.

Source: PENGU/USDT on TradingView

The CMF indicator managed to poke its head above the +0.05 mark once again, to reflect sizeable buying pressure in the market. The RSI also climbed above 70 to indicate strong bullish momentum.

A daily trading session close above $0.0127 could see the RSI exhibit a bearish divergence on the given timeframe.

This would signal the possibility of a rejection from the $0.0141 local high, but not guarantee a price drop.

Source: Coinalyze

The data from Coinalyze showed strong bullish sentiment in the short-term. Open Interest rose rapidly alongside the price to reflect heightened speculative activity.

However, bullish enthusiasm appears to be tempered and not overboard.

The Funding Rate was not consistently positive in recent hours. This could be a result of Futures traders trying to catch the market top and taking short positions, more in line with the past week’s market sentiment.

Overall, the short-term outlook was bullish. The momentum divergence meant that traders should be wary of a rejection from $0.0141. Volatility around BTC could also affect the Pudgy Penguins token.