Bitcoin, the leading cryptocurrency by market capitalization, seems to have entered a phase of consolidation above the $30,000 mark following a notable surge of over 10% on Tuesday. While the price movement has generated a lot of interest among investors, it remains uncertain whether Bitcoin will maintain its upward momentum or experience a pullback in the coming days. Bitcoin Uncertain Trajectory Ben Lilly, a well-known cryptocurrency analyst, and economist, recently shared his thoughts on the current state of Bitcoin’s price action and its potential future trajectory. In a recent analysis, Lilly dubbed the current price movement the “Larry Fink Pump,” referencing the recent announcement by BlackRock’s CEO Larry Fink regarding the company’s increased interest and application for a Bitcoin spot ETF. While the pump has caused some excitement among investors, Lilly notes that several factors could cause the rally to falter. Related Reading: Bitcoin Investor Sentiment Suggests BTC Rally Is Far From Over For one, Bitcoin has already wiped out the remaining high-leverage liquidity to the upside, and the Cumulative Volume Delta (CVD) spot seems to have lost its short-lived trend already. Additionally, the fuel meter discussed in a recent Alpha Bites episode by Benjamin Skew of Jarvis Labs LLC has dropped significantly from its pre-pump levels, which could indicate a bearish case for Bitcoin in the short term. Despite these potential bearish factors, Lilly remains optimistic about Bitcoin’s future. He notes that the $24,000 level is still sitting there and could be had if the price breaks the 200-day moving average, which is currently creeping above it. If this happens, he predicts that Bitcoin could drop to $21,000-$22,000. However, Lilly also sees the possibility of an upside scenario for BTC. He notes that low-leverage liquidity sits at $32,000, and he would “love to see it taken out.” Looking at the returns by trading session, he points out that the New York session seems to be leading the way. He notes that when the trend of the New York session ends, there’s a bit of a lag before the price responds to the downside, suggesting that the June options max pain of $25,000 may not happen. Lilly also highlights the recent increase in the whale holding chart, as seen in the chart below, which indicates that large Bitcoin holders, commonly referred to as whales, are once again accumulating the cryptocurrency. This is the first time a trend like this has been observed since mid-January, suggesting that there may have been significant accumulation happening before the recent surge in BTC’s price. Related Reading: Is Chainlink The Most Undervalued Altcoin? It’s Do Or Die For LINK Overall, Lilly concludes that investors should not be quick to fade this Bitcoin rally. While there are potential bearish factors at play, there are also several bullish indicators. Investors should track the data to see if the trend continues and be prepared for potential volatility events in the future. At the time of writing, Bitcoin has maintained a stable price for several days. The cryptocurrency is currently trading at $30,100 and has managed to stay in positive territory, with a slight increase of 0.6% over the past 24 hours. Featured image from Unsplash, chart from TradingView.com
