The Bitcoin price surged by more than 191 percent in the past three months. BTC dropped to as low as $3,600 on the so-called “Black Thursday” on March 12. Since then, the dominant cryptocurrency rose to as high as $10,440, completing its fastest recovery since June 2019.
A confluence of key fundamental and technical factors pushed the price of Bitcoin up in a short period of time. Most notably, relatively high options, spot, and institutional volume in comparison to previous years seemingly played a vital role in the upsurge.
Yet, on June 2, the price of Bitcoin abruptly fell by 14% against the USD.
Bitcoin price is below $10,000 again, now what?
Technically, Bitcoin is at a crucial pivotal point that may decide its medium to long-term trend over the next 12 months.
If the price of Bitcoin remains above $10,500 over the next week, it will confirm a breakout above a multi-year cycle dating back to 2017.
Global Macro Investor CEO Raoul Pal emphasized that Bitcoin is breaking out of a three-year trend.
But, the price of Bitcoin plunged from $10,440 to $8,600 within minutes, demonstrating a brutal rejection.
The fundamental difference between the ongoing rally and previous upsurges seen in October 2019 and February of this year is the involvement of retail, professional, and institutional investors.
In February, less than four months ago, the price of Bitcoin reached a local peak at around $10,550. At the time, various metrics suggested that the futures market primarily fueled the rally. This time around, the Bitcoin options market is maintaining an open interest above $1 billion. That means, the total amount of options contract actively open in the market is above a billion dollars.