Bitcoin Price Analysis: Optimism Returns as BTC Stays Above $43,000
Bitcoin closed yesterday with prices above $43,000, opening the doors to completely different graphical scenarios from those hypothesized last week and bringing optimism to the market: the analysis of the crypto price indicates the possibility of a recovery of local highs in the short term.
Bitcoin Surprises Crypto Investors
While the cryptocurrency market is being scared by mainstream media FUD news related to MT.GOX refunds, Bitcoin surprises everyone once again and returns with its head held high above $43,000 USD, with price analysis suggesting the possibility of a bullish continuation. The cryptocurrency par excellence has brought its market capitalization back to $850 billion, with dominance slightly increasing to 52.6 percentage points compared to other currencies in the sector.
Optimism and Confidence Grow
The optimism and confidence of market operators are starting to be felt after Bitcoin had lost over 20% of its price following the approval of the spot ETF in the United States. Now traders’ spirits are more inclined towards optimism, improving from the conditions of neutrality and uncertainty that we could observe in the previous days. The Fear and Greed index indicates a positive absolute value of 61, typical of moderate optimism.
Inflow of Money from ETFs
The responsibility for recovering the price level of $43,000 USD by Bitcoin is subject to the inflow of money from ETFs in the USA. Expert analysis shows how outflows from Grayscale have significantly decreased, while other funds attract more inflows than outflows from Grayscale, making the netflow significantly positive. If this condition remains unchanged in the coming days, we could expect a jump above $47,000 USD for BTC.
New Proposals for Spot ETF in Hong Kong
The pressure from one of the main asset managers in Hong Kong has requested Chinese regulatory authorities to approve the first exchange-traded fund in the Eastern country. The official launch of the Bitcoin trading tool is expected potentially on February 10th, right after the Hong Kong lunar new year. In addition, Venture Smart Financial Holdings Ltd. is also considering a new ETF in China that could likely be available in the first quarter of this year.
Price Analysis and Future Predictions
Bitcoin is currently trading at around $43,350 USD, staying above the EMA 50 daily. The most likely trading range for the asset during the week is between $42,000-$45,000 USD. The funding rate on derivative markets has returned widely positive, as well as the open interest which has jumped above $11 billion dollars. The volumes on the spot markets are not encouraging, leaving room for a potential bearish move. However, the odds are in favor of a bullish continuation for Bitcoin, with a target likely above $100,000 USD per unit.
Hot Take: Bitcoin’s Bull Market Is Here
Bitcoin continues to surprise and bring optimism to the crypto market as its price stays above $43,000 USD. Despite recent challenges and FUD news, Bitcoin’s recovery and positive price analysis suggest a bullish continuation in the short term. With inflows from ETFs and proposals for spot ETFs in Hong Kong, Bitcoin’s market outlook remains optimistic. While there may be potential bearish moves and uncertainties in spot market volumes, experts predict that Bitcoin could reach $50,000 USD by the end of Q1 2024 and possibly surpass $100,000 USD in the long term. The bull market is right in front of us.
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