Bitcoin Breaks $46,000 Resistance Level
On February 9th, Bitcoin surpassed the $46,000 mark, breaking through a significant resistance level at $44,000. This resistance had been hindering price increases since the introduction of spot Bitcoin ETFs in the United States four weeks earlier.
The surge in Bitcoin’s price coincided with the beginning of an auspicious period in the Chinese Zodiac, which is celebrated during East Asia’s major festival. This led to the cryptocurrency reaching its highest point in a month.
Bitcoin Poised for $48,000 Breakthrough
This recent breakthrough is a significant achievement for Bitcoin as it signals the end of a corrective phase that saw its price drop to $38,500 in late January.
According to Markus Thielen, founder of 10x Research, Bitcoin is expected to reach $48,000 in the near future. Thielen attributes this potential breakout to a historical trend of significant gains during the Chinese New Year festivities.
Using the Elliott Wave theory to predict future price movements, Thielen notes that Bitcoin has completed its wave four retracement and has entered the fifth impulsive stage of its upward trend. Based on his analysis, Thielen expects the crypto asset to climb to $52,000 by mid-March. He also anticipates that the bull run will continue until 2025, with the peak expected between April and September of that year.
Bitcoin Rebounds from ‘ETF Hangover’
Santiment’s latest analysis reveals that Bitcoin has rebounded above the key level for the first time since the ‘ETF hangover’ retracement began on January 12th.
Raj Karkara, COO of ZebPay, highlights the role of increasing inflows in the ETF market in this positive market trend. The accessibility of ETFs is widening the investor base for Bitcoin.
Furthermore, the increase in holdings among wallets containing 1,000 or more BTC indicates renewed investor confidence. This accumulation has reached its peak in over 14 months. Additionally, Bitcoin’s social volume appears to be rising.
Despite the surge, on-chain data shows that traders continue to exhibit skepticism towards Bitcoin for the third consecutive week. However, the ratio of BTC on exchanges has hit its lowest point since December 2017, suggesting that investors are not looking to offload their tokens anytime soon.
Hot Take: Bitcoin Gains Momentum and Overcomes Resistance
Bitcoin’s recent surge past $46,000 demonstrates its growing momentum and ability to overcome significant resistance levels. Breaking through the $44,000 barrier that had hindered price increases since the introduction of spot Bitcoin ETFs, Bitcoin reached its highest point in a month.
Predictions from experts like Markus Thielen indicate that Bitcoin is poised for further breakthroughs, with a potential climb to $48,000 and even higher in the near future. The rebound from the ‘ETF hangover’ retracement and increased accumulation among larger wallets also suggest renewed investor confidence.
While skepticism persists among some traders, the low ratio of BTC on exchanges indicates that investors are holding onto their tokens rather than selling them. This positive market trend, fueled by increasing inflows in the ETF market and broader investor accessibility, bodes well for Bitcoin’s future prospects.
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