Bitcoin Surges Past $46,000 Mark Amidst Chinese New Year Festivities

Bitcoin Surges Past $46,000 Mark Amidst Chinese New Year Festivities

Bitcoin has experienced a significant surge, surpassing the $46,000 mark on February 9th. This breakthrough comes after overcoming a notable resistance level at $44,000, which had hindered price increases for several weeks. The surge in Bitcoin’s value can be attributed to the onset of East Asia’s major festival, marking the beginning of an auspicious period in the Chinese Zodiac. This surge represents a positive development, signaling the end of a corrective phase that saw Bitcoin’s price drop to $38,500 in late January.

Notable cryptocurrency expert Markus Thielen, founder of 10x Research, predicts that Bitcoin will continue to rise and reach $48,000 in the near future. Thielen bases his prediction on the historical trend of significant gains during the Chinese New Year festivities. Using the Elliott Wave theory, which identifies repetitive wave patterns, Thielen analyzed Bitcoin’s price movements. According to his analysis, Bitcoin has completed its wave four retracement and has entered the fifth impulsive stage of its upward trend. Thielen expects Bitcoin to climb to $52,000 by mid-March and foresees the bull run continuing well into 2025, with the peak anticipated between April and September of that year.

Increased Investor Confidence

Santiment’s latest analysis highlights Bitcoin’s resurgence above the key resistance level, which is the first time since the initiation of the retracement on January 12th. Furthermore, there has been a notable increase in the holdings of wallets containing 1,000 or more BTC, reaching the highest level of accumulation in over 14 months. This accumulation indicates renewed investor confidence in Bitcoin’s future prospects.

The Role of ETFs in Bitcoin’s Surge

In recent days, there has also been a significant inflow of funds into Bitcoin ETFs. Fidelity Wise Origin Bitcoin (FBTC) witnessed a net inflow of approximately $130.1 million on February 7th. Additionally, iShares Bitcoin Trust (IBIT) recorded a total volume of $478.5 million on February 8th. The increasing popularity and accessibility of ETFs have played a pivotal role in driving the positive market trend for Bitcoin. The availability of ETFs has widened the investor base for Bitcoin, attracting more individuals to invest in the cryptocurrency.

Despite the surge in Bitcoin’s price, on-chain data reveals that traders have exhibited continued skepticism towards the asset for the third consecutive week. However, it is worth noting that the ratio of BTC on exchanges has reached its lowest point since December 2017. This suggests that investors are holding onto their Bitcoin tokens and are not looking to offload them anytime soon.

Bitcoin’s recent surge beyond the $46,000 mark during the Chinese New Year festivities signifies a positive development for the cryptocurrency. Markus Thielen’s predictions and analysis provide further optimism for Bitcoin’s future trajectory, projecting a climb to $48,000 in the near term and a peak between April and September 2025. Increased investor confidence, driven by rising accumulation among wallets with significant BTC holdings, further supports the notion of a bullish market sentiment. The inflow of funds into Bitcoin ETFs highlights the growing accessibility and appeal of this cryptocurrency to a wider range of investors. While skepticism among traders persists, the significant drop in the ratio of BTC on exchanges suggests a sentiment of long-term holding rather than immediate selling. Overall, with the backdrop of the Chinese New Year festivities, Bitcoin’s surge represents a promising start to the year for the leading cryptocurrency.

Crypto

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