Bitcoin Surpasses the $50,000 Mark as FOMO Grows! Will Bullish Momentum Maintain $50K or Initiate a Correction?

Bitcoin is poised for a strong comeback after enduring a lengthy bear market and losing investor confidence. In the past few hours, the price of BTC has surged impressively from a low of $47,500 to reach the highly anticipated milestone of $50,000. This surge can be attributed to significant inflows into Bitcoin ETFs over the past week, which have skyrocketed market confidence. However, analysts are speculating about the sustainability of this surge, as many holders may be tempted to sell off their profits.

Despite not yet reaching its 2021 high of nearly $69,000, Bitcoin has been on an upward trajectory, even amidst corrections influenced by ETF activity. This week, it surpassed the $48,000 and $49,000 marks, reaching heights not seen in almost two years. Now, it has broken through the much-awaited $50K mark and is aiming to reach its all-time high this year.

In the past hour, the Bitcoin market experienced a significant shakeout, resulting in total liquidations of approximately $25.3 million. Sellers saw around $24.5 million of their positions cleared.

The recent increase in Bitcoin’s price is supported by a substantial influx of funds into spot Bitcoin ETFs last week, with over $1.1 billion entering the market. This surge comes as outflows from established funds, such as the Grayscale Bitcoin Trust (GBTC) and ProShares’ futures-based ETF, begin to slow down.

Analysts and market experts are predicting that Bitcoin will climb above $50,000 and potentially reach a new peak before the halving event, which is just over 65 days away.

Opinions regarding Bitcoin hovering around the $50,000 mark are divided, with some analysts expecting a correction as short-term holders prepare to sell off their holdings.

If Bitcoin surpasses specific technical barriers, such as the Fibonacci retracement level around $51.2K, it could trigger further surges. However, the market should be prepared for different outcomes, including possible retracements to retest support zones, as a long squeeze can be triggered at any time.

Bitcoin is currently undergoing a correction, as sellers increasingly open short positions at around $49,994 to $49,999, leading to a minor pullback towards $49,400. However, Coinbase data shows that the BTC price briefly touched the $50K mark before the correction.

In November 2021, during the previous bull market, Bitcoin reached its peak value of $69,044, with the total market capitalization of all cryptocurrencies exceeding $3 trillion. As of the latest update, the global cryptocurrency market capitalization stands at $1.9 trillion.

In recent minutes, the BTC price has seen a decrease in its long/short ratio, falling below 1 to 0.8349. This indicates that selling volume is surpassing buying activity, as more traders are initiating short positions in anticipation of a price adjustment from the $50K high. Currently, 54.5% of all positions are betting on a price drop, while 45.5% are forecasting a rise in price.