Bitcoin has once again defied expectations as it surged past the $46,000 mark on February 9th, overcoming a significant resistance level at $44,000. This breakthrough comes after weeks of struggle, with the resistance hindering price increases ever since the introduction of spot Bitcoin ETFs in the United States about four weeks earlier. However, fueled by the onset of East Asia’s major festival signaling an auspicious period in the Chinese Zodiac, Bitcoin reached its highest point in a month. This achievement is a notable milestone, indicating the end of a corrective phase that saw the asset drop to $38,500 in late January.
One expert, Markus Thielen, the founder of 10x Research, predicts that Bitcoin is poised to continue its upward momentum and reach $48,000 in the near future. Thielen’s prediction is based on a historical trend of significant gains during the Chinese New Year festivities. Leveraging the Elliott Wave theory, which identifies repetitive wave patterns, Thielen notes that Bitcoin has completed its wave four retracement and entered the fifth impulsive stage of its upward trend. According to his analysis, the crypto asset is expected to climb to $52,000 by mid-March. Thielen goes even further, anticipating that the bull run will continue well into 2025, with the peak expected between April and September of that year.
Santiment’s latest analysis reveals that Bitcoin has once again surged above a key level, marking the first time since the retracement started on January 12th. This resurgence is accompanied by an increase in holdings among wallets containing 1,000 or more BTC, reaching their peak accumulation in over 14 months. This surge in accumulation indicates renewed investor confidence in the cryptocurrency.
Additionally, Bitcoin’s social volume appears to be rising, with increased discussions and conversations surrounding the asset. Despite the surge, on-chain data reveals that traders continue to exhibit skepticism towards Bitcoin for the third consecutive week. This skepticism is highlighted by the lowest point in the ratio of BTC on exchanges since December 2017. The data suggests that investors are holding onto their tokens and are not looking to offload them anytime soon.
The recent positive market trend and the increased accessibility of Bitcoin can be attributed in part to the introduction of Bitcoin ETFs. Fidelity Wise Origin Bitcoin (FBTC) saw a net inflow of close to $130.1 million on February 7th, while Ishares Bitcoin Trust (IBIT) recorded a total volume of $478.5 million on February 8th. These figures indicate the growing investor base for Bitcoin, as ETFs offer a more straightforward and regulated way to invest in the cryptocurrency.
Bitcoin’s recent surge and breakthrough of the resistance level suggest a promising future for the leading cryptocurrency. With expert predictions indicating continued upward momentum and an extended bull run, Bitcoin is poised to reach new heights. The increase in investor confidence, highlighted by the accumulation of BTC in wallets and the decreasing ratio of BTC on exchanges, further strengthens the positive outlook. As Bitcoin continues to evolve and gain wider recognition in the crypto landscape, its potential for growth and adoption remains significant.
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