A surprising price recovery in the cryptocurrency market led by Bitcoin caught bears on the wrong side of the trade this Monday. Bears lost $1 billion on their leveraged short bets, according to data provided by ByBt.com.
The BTC/USD exchange rate rebounded to an intraday high of $38,750 before correcting lower short-term profit-taking sentiment. At its previous week’s lowest, the pair was changing hands for $31,111 — a 24.55 percent retracement between extreme swing highs and lows in the previous 24 hours.
The new buying sentiment appeared right ahead of the CoinDesk Consensus conference, featuring critical keynote addresses from Bridgewater Associate’s founder Ray Dalio, alongside MicroStrategy’s chief executive Michael Saylor, Ark Invest’s CEO and CIO Cathie Wood, and Federal Reserve’s Board of Governors’ member Lael Brainard.Last week, traded had panic-dumped their upside crypto positions after taking cues from Elon Musk. Musk, the founder of electric vehicle giant Tesla, responded “indeed” to a Twitterati on Tesla’s potential intention to unload its $1.5bn worth of bitcoin investments. Before that, Musk was engaging in a tweet war with some of the most influential crypto influencers, including Saylor.$42,000Bitcoin prices crashed to as low as $30,000 on May 19, liquidating over $9 billion worth of long positions, the worst since the coronavirus-led price crash in March 2020. Today, the keynotes from industry professionals were expected to offset the Musk-led FUD.
So it happened, the Bitcoin price reacted positively to Dalio’s admission that he holds some bitcoin tokens. The billionaire, hedge fund manager, did not reveal the exact quantity. Still, it was enough to add a free dose of optimism in the market that was risking additional declines below $30,000 just 24 hours ago.“30K held, we’re seeing a short squeeze rn,” noted a pseudonymous market analyst. “You’ll see how fast people will forget the crash and become euphoric again.”The independent chartist added that the bitcoin price could climb until $42,000 on fresh euphoria. However, bulls need to hold $42K as support or risk crashing back into bearish trading ranges.
Bullish Bitcoin Market Ahead?On-chain analyst Willy Woo also noted that the current bitcoin price rebound looks like March 2020 retracement.