Bitcoin's rapid surge triggers retail FOMO, analysts warn of short-term pullback risk

BlockBeats News, August 23rd, according to Forbes report, Bitcoin recently surged from $62,900 to $79,500, with a 26% increase in 5 days. Over $3.1 billion in short positions were liquidated before. Trader MARMOT stated that this rally was not entirely driven by organic demand but was a typical short squeeze event. He pointed out that in the past few days, around $3.1 billion in short positions were liquidated, one of the largest liquidation events he has ever seen. At the same time, as Bitcoin rapidly rose, retail investors FOMO sentiment became evident.

Geoff Kendrick, Digital Asset Research Director at Standard Chartered Bank, stated that his previous prediction of Bitcoin reaching $100,000 by the end of the year might have been underestimated. He believes that Bitcoin may retest its historical high of $126,000 and expects the market's recovery to further accelerate after October 6th.

Meanwhile, some market participants believe that the current upward trend may face short-term overheating risks. Trader David Goldstein stated that Bitcoin's surge from $64,000 to nearly $80,000 was mainly driven by the US Treasury bond repurchase signal and unprecedented short squeeze in years. He believes that $80,000 is the first major resistance level, and this rally may peak in the $85,000 to $90,000 range, followed by a correction or consolidation around $70,000 to $75,000.

Data from prediction platforms shows that the market's expectations for Bitcoin's future price are heating up. At the same time, inflows into the US spot Bitcoin ETF have warmed up, with a cumulative inflow of $1.62 billion in the four trading days leading up to August 21st, reversing the previous week's net outflow trend.

However, several traders warn investors against chasing the price higher due to the rapid increase. Crypto Kit stated that just a week ago, the market was still waiting for a buying opportunity at $45,000 to $50,000, but now that Bitcoin has risen to $77,000, investors suddenly accept the current price, indicating a significant increase in market FOMO sentiment. And mentioned, "I will not enter the market hastily for fear of missing out because the market could drop by 10% at any time, and nothing can prevent this scenario from happening."