For the first time since the spot ETFs’ debut trading on January 11, Bitcoin (BTC) has surpassed $46,000. According to data from Coingecko, BTC was up 3.4% the day before to $46,075 at the time of publication, maintaining a 6% gain from the previous seven days.
Bitcoin flexes its muscles and reclaims the $46,000 level
Despite the approval of a number of long-awaited exchange-traded funds intended to bolster its institutional legitimacy, Bitcoin’s 2024 has had a rocky start. However, things are improving as Bitcoin is now trading above the $46k area again.
Laurent Ksiss, a specialist in crypto exchange-traded products (ETPs) at CEC Capital, said that if the current uptrend continues, breaking the $45,000 barrier could make early investors in the BTC ETF close to profitability. He also suggested that this momentum could lead some investors to take profits, potentially triggering a reversal and testing the $42,000 to $40,000 level.
After launching 10 ETFs in January, the price of BTC experience an unexpected drop. The value fell after briefly reaching $49,000 when one of the funds, Grayscale, began transferring significant portions of their cryptocurrency to Coinbase.
BTCUSD currently trading at $46,165 on the daily chart: TradingView.com
This was due to the fact that before Grayscale the Bitcoin Fund ETF with an open-end fund, investors had to hold their shares for at least six months before they could cash out. Many investors were eager to cash out and redeem their shares when it became an ETF in January.
Whale lust rises for BTC
As a result, Grayscale sold massive amounts of Bitcoin, which dropped in price. It was trading below $39,000 at one point. However, it appears that the sell-off has ended and Bitcoin is rising again, partly due to large holders acquiring the assets.
Meanwhile, Markus Thielen, head of research at Matrixport and founder of 10x Research, says Bitcoin (BTC) is headed to $48,000 in the near future following its breakthrough, driven by a solid track record of gains during the Chinese New Year festival.
Because bitcoin often rises more than 10% around Chinese New Year, starting on February 10, the following days are statistically extremely important, according to Thielen’s research on Thursday.
Every time traders bought bitcoin three days before the start of the Chinese New Year and sold it 10 days later, the price of bitcoin has risen over the past nine years, according to Thielen.
Bitcoin has reached $50,000
In a related development, LMAX Digital stated that it expects Bitcoin to continue to rise and perhaps reach the $50,000 mark.
According to LMAX Digital, bitcoin has technically moved out of reach and may be aiming for a surge to a new annual high of $50,000.
Using the Elliott Wave theory, a technical study that postulates that prices move in repeating wave patterns, Thielen predicted greater upside for bitcoin in the future.
The concept states that price trends develop in five phases, with waves 1, 3 and 5 serving as ‘impulse waves’ that indicate the primary trend. Retracements between the impulsive price movements occur in waves two and four.
Thielen said Bitcoin has entered the final, fifth impulsive phase of its rally, aiming to reach $52,000 by mid-March after completing the wave 4 retracement and correcting to $38,500.
Featured image from Adobe Stock, chart from TradingView
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