BTCUSD is currently trading at $46,165.
For the first time since the trading debut of spot ETFs on January 11, Bitcoin (BTC) surpassed $46,000. According to data from Coingecko, BTC had risen 3.4% the previous day to $46,075, maintaining a 6% increase over the previous seven days.
Bitcoin Flexes Its Muscles and Reclaims the $46,000 Level
Despite the approval of several highly anticipated exchange-traded funds aimed at strengthening its institutional legitimacy, Bitcoin’s 2024 year is off to a rocky start. However, things are looking up as Bitcoin is trading back above the $46,000 territory.
Laurent Ksiss, cryptocurrency exchange-traded products (ETP) specialist at CEC Capital, mentioned that if the current bullish trend continues, breaking the $45,000 mark could bring profitability closer to early investors in the BTC ETF. He also suggested that this momentum could lead some investors to take profits, which could trigger a reversal and test the $42,000 to $40,000 level.
After the introduction of 10 ETFs in January, the BTC price saw an unexpected drop. The value plummeted after momentarily touching $49,000 when one of the funds, Grayscale, began transferring significant portions of its cryptocurrency to Coinbase.
This was due to the fact that before Grayscale converted the Bitcoin Fund ETF into an open-ended fund, investors had to hold their shares for a minimum of six months before being able to withdraw cash. Many investors were eager to cash out and redeem their shares when it became an ETF in January.
Whales’ Appetite for BTC Increases
Grayscale sold huge amounts of Bitcoin, the price of which dropped. At one point it was trading below $39,000. However, it appears that the sell-off is over and Bitcoin is rising once again, in part due to large holders acquiring the asset.
Meanwhile, Markus Thielen, head of research at Matrixport and founder of 10x Research, says Bitcoin (BTC) is heading towards $48,000 in the near future following its breakout driven by a strong history of gains during the Chinese New Year festival.
Since bitcoin typically rises more than 10% around Chinese New Year, starting on February 10, the following days are extremely important statistically, according to Thielen’s research on Thursday. Every time traders purchased bitcoins three days before the start of the Chinese New Year and sold them 10 days later, the Bitcoin price increased over the previous nine years, according to Thielen.
Bitcoin Expected to Reach $50,000
In a related development, LMAX Digital anticipates Bitcoin will continue to rise, perhaps reaching the $50,000 mark. According to LMAX Digital, technically speaking, Bitcoin has broken out of a range and may point to a rise to a new yearly high of up to $50,000.
Using Elliott Wave theory, Thielen projected greater upside for bitcoin in the future, stating that Bitcoin has begun its latest and fifth impulsive leg of its rally, aiming to reach $52,000 by mid-March, after completing its wave 4 retracement and correcting to $38,500.
On the other hand, renowned cryptocurrency analyst Eric Krown Crypto said that in the short term, there could be a downward move towards $40,000. He also talked about the ambiguity surrounding Bitcoin’s price action, wondering whether it will reach $55,000, or fall to $30,000.
Krown warned that while the statistical analysis may be biased downward, the situation is still evolving. Despite his bullish stance, the analyst advises caution and encourages investors to wait for market confirmation before making major trading decisions.
By Leonardo Perez