Bitcoin's recent price surge of over 19% in just three weeks has sparked a mix of optimism and caution among traders and analysts, leaving many wondering if the cryptocurrency's price will continue to soar or crash again. The price rebound from a two-month low of approximately $56,550 to reach $67,270 on May 20 has been impressive, but a closer examination of technical charts and market analysis suggests a sharp correction of at least 20% may be looming in the coming weeks.

The current bull flag pattern, which has been trending since March, indicates a potential breakout or pullback. The lack of adequate trading volume during the recent breakout attempts increases the likelihood of a pullback, with the next downside target being the flag's lower trendline, coinciding with the 200-day exponential moving average (200-day EMA) at around $53,970 by June. This would represent a significant correction and could potentially lead to a retest of previous support levels.

On the other hand, a decisive breakout above the flag's upper trendline could send Bitcoin's price soaring by as much as 25% to $84,000 by June, which would be a new all-time high. This scenario is possible if the current momentum continues and more investors enter the market, driving up demand and prices.

Furthermore, the recent infusion of new Tether (USDT) stablecoins into the market increases overall liquidity, potentially catalyzing Bitcoin to reach new all-time highs. Tether, the world's largest stablecoin, has reached a new all-time high market capitalization above $110 billion, indicating a strong demand for stablecoins and potentially leading to more investment in Bitcoin.

The Bitcoin Net Unrealized Profit/Loss (NUPL) metric also indicates a cautious upside sentiment, with a value of 0.54 as of May 4. While this suggests a confident market sentiment, the declining NUPL from its 2024 peak of 0.68 may indicate declining euphoria, potentially preceding or coinciding with price corrections. This metric measures the difference between the current price and the average acquisition price of all coins in circulation, providing insight into market sentiment and potential price movements.

Bitcoin's price trajectory in the coming weeks and months is uncertain, with both bullish and bearish signals present. Traders and investors must exercise caution and conduct thorough research before making any investment decisions. The cryptocurrency market is known for its volatility, and Bitcoin's price can fluctuate rapidly, making it essential to stay informed and adapt to changing market conditions.

Here are the main points:

- Bitcoin's price has rebounded by over 19% in three weeks but may be due for a sharp correction

- The current bull flag pattern indicates a potential breakout or pullback

- Lack of trading volume increases the likelihood of a pullback to $53,970 by June

- A decisive breakout above the flag's upper trendline could send Bitcoin's price to $84,000 by June

- New Tether stablecoins increase overall liquidity, potentially catalyzing Bitcoin to reach new all-time highs

- Bitcoin NUPL metric indicates cautious upside sentiment, but declining euphoria may precede price corrections

Additionally, it's important to consider the following factors:

- Global economic conditions and their impact on investor sentiment

- Regulatory developments and their potential effect on the cryptocurrency market

- Technological advancements and their influence on Bitcoin's price and adoption

- Market sentiment and how it may shift in response to various factors