Bitcoin Price Surpasses $50,000 for the First Time in 2 Years
On February 12th, the Bitcoin price reached a significant milestone by surpassing the $50,000 barrier for the first time in two years. This surge resulted in a 3.8% increase within the day and reversed the losses caused by the introduction of a spot BTC ETF. Now, the question is whether this recovery will exceed BTC’s previous peak of $68,789.
Is Bitcoin Price Recovery Sustainable?
After the launch of Spot Bitcoin ETFs on January 11th, BTC experienced a notable correction, dropping from $49,000 to $38,542. This decline was largely influenced by bearish sentiment due to significant outflows from Grayscale $GBTC. However, investor confidence began to return as daily inflows into these ETFs gained momentum. Nine Spot Bitcoin ETFs collectively reached an Assets Under Management (AUM) milestone of $10 billion within just a month of their launch. As a result, Bitcoin saw a strong rebound and currently trades at $49,912.
According to Anthony Pompliano, founder of Pomp Investments, there is high demand for Bitcoin compared to its daily production rate. The upcoming halving event will reduce daily production from 900 Bitcoin to 450 Bitcoin, further driving up demand and potentially pushing the price back to its all-time high.
What does BTC’s Technical Analysis Say?
The recent jump in BTC price resulted in a bullish breakout from the cup-and-handle pattern. This pattern is a bullish reversal signal that indicates a trend reversal and presents a new entry opportunity for traders. With BTC currently trading at $49,912, it may experience a minor pullback in the coming days to confirm its sustainability for higher levels. If the pattern holds true, the BTC price could potentially reach a target of $82,250.
Technical indicators such as the Exponential Moving Average (EMA) and the Average Directional Index (ADX) also support the bullish trend and suggest that buyers have sufficient momentum to sustain the current rally.
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