Driven by whale activity and retail FOMO, Bitcoin has rebounded to $108,000.
Market sentiment has surged into the greed zone, but technical indicators warn of a potential short-term pullback.
Bitcoin [BTC] has rebounded above $108,000, breaking the recent panic below $100,000.
A wave of optimism is sweeping through retail, while well-capitalized participants seem to be making bold, calculated bets.
From sudden whale activity to high-leverage speculative plays, this latest [surge] is not just triggering price action.
Here’s what we are seeing and the potential implications it may bring.
FOMO is back, but a familiar sign is also emerging.
Bitcoin rebounded sharply from $105,000 to $108,000 yesterday, triggering a surge in retail optimism—reflected in the second highest peak of FOMO sentiment in two weeks.
According to Santiment, trader sentiment has re-entered the 'greed zone', which has historically been associated with market tops.
After falling below $100,000 last week, many traders panicked and sold. Now, as prices rise again, social sentiment is beginning to turn bullish.
But in the cryptocurrency space, such energy often foreshadows market reversals. As market sentiment outpaces fundamentals, investors may again be preparing for contrarian moves.
Whale wallets are starting to act.
The latest on-chain data confirms many people's suspicions; whales are actively intervening.
A wallet just opened with a long position of 20 times leverage worth over $50 million, aiming to capitalize on BTC's momentum of $1.065 million.
Meanwhile, 997 BTC flowed out of Kraken, depositing a series of large transactions into unidentified wallets, raising widespread concern. These institutions are steadfast in their positions and rarely take action without reason.
While retail traders are still grappling with the 'fear of missing out' mentality, whales seem to be betting on deeper upside potential.
Momentum is strengthening, but cautious sentiment is gradually rising.
As of the time of writing, Bitcoin's RSI is 61.13, indicating strong market momentum, but it has not yet reached overbought territory. Price action shows strong upward momentum above $108,000, but a slight pullback today suggests potential fatigue in the short term.
The 1.74 million OBV supports continued accumulation, but the flattening slope suggests that buying pressure may be cooling.
If OBV and RSI further diverge, a short-term pullback may follow. Bulls still control the trend, but maintaining above $110,000 with volume confirmation will be key to avoiding a repeat of late May's scenario.
