Bitcoin Price Soars Above $46,000 Driven by Strong ETF Inflows
Bitcoin (BTC) has reached its highest level in a month, surpassing $46,000. The surge in the cryptocurrency’s price can be attributed to steady inflows into various spot-based US funds and anticipation surrounding April’s halving event. Recent data shows that new spot Bitcoin ETFs have attracted significant interest, with 10 consecutive days of net inflows reaching $8 billion this week, a clear indication of strong investor demand. Notable performance from major funds such as BlackRock and Fidelity’s ETFs has also contributed to the rise in Bitcoin’s price.
Chinese New Year Could Bring an 11% Rally for Bitcoin
As the Chinese New Year approaches, statistical data indicates that Bitcoin typically experiences an 11% rally during this period. Markus Thielen, head of research at 10X Research, reveals that in the past nine years, Bitcoin has consistently seen positive returns when traders buy the cryptocurrency three days before the Chinese New Year and sell it ten days after. This trend has a hit ratio of 100%. Furthermore, Thielen highlights that the influx of money from US institutions, driven by ETF flows, has also had a significant impact on Bitcoin’s recent performance.
Bitcoin’s Close Above $44,000 Could Signal Bullish Trend
Bitcoin has not had a weekly close above $44,000 since March 2022, according to Rachel Lin, CEO and co-founder of Singapore-based derivatives DEX SynFutures. Lin believes that any close above this level by the end of the week would be a bullish sign for Bitcoin’s price. She also notes that while the week may have been uneventful, recent days have seen more exciting price action. Lin points out that breaking above the resistance zone of $46,700 to $46,800 would be a positive development, even in the longer-term chart.
Bitcoin’s Rise Above Moving Average Signals Bullish Trend
Bitcoin’s rise above its 50-day moving average confirms a bullish trend, providing reassurance to investors concerned about a major correction, says Alex Kuptsikevich, a senior market analyst at FxPro. Despite experiencing brief price spikes earlier this year due to intra-week volatility, Bitcoin has managed to surpass its previous closing levels on a weekly basis. Market analysts consider weekly closes to be a more significant benchmark, indicating the strength of Bitcoin’s upward movement.
Growing Attention from Major Investors Boosts Bitcoin’s Momentum
Bitcoin’s upward momentum is receiving a boost from major investors, commonly known as “whales,” who are actively accumulating the cryptocurrency. Data from on-chain analytics platform LookOnChain reveals significant transactions, such as substantial withdrawals from Binance worth about $118 million before the recent price surge. This growing attention from major investors is contributing to the positive trajectory of Bitcoin’s price.
Predictions for Bitcoin’s All-Time High Post-Halving
Experts from personal finance site Finder predict that Bitcoin will reach a peak of $88,000 in 2024. This optimistic outlook is based on the upcoming halving event scheduled for April, which halves the reward given to miners for maintaining the security of the blockchain. Half of Finder’s experts anticipate that Bitcoin will achieve a new record high six months following the halving event. Pav Hundal, lead market analyst at Swyftx, emphasizes the significance of the halving event for the industry, as it will make Bitcoin more scarce, regardless of future geopolitical or economic conditions.
Analyst comment
Positive: Bitcoin Price Soars Above $46,000 Driven by Strong ETF Inflows. Analyst prediction: The market will continue to experience strong demand and the price of Bitcoin is expected to rise further.
Positive: Chinese New Year Could Bring an 11% Rally for Bitcoin. Analyst prediction: Bitcoin is likely to experience a rally during the Chinese New Year period based on historical data and increased institutional investment.
Positive: Bitcoin’s Close Above $44,000 Could Signal Bullish Trend. Analyst prediction: A weekly close above $44,000 would indicate a bullish trend for Bitcoin’s price and breaking resistance levels would be positive for its longer-term chart.
Positive: Bitcoin’s Rise Above Moving Average Signals Bullish Trend. Analyst prediction: Bitcoin’s rise above its 50-day moving average confirms a bullish trend and reassures investors of its upward movement.
Positive: Growing Attention from Major Investors Boosts Bitcoin’s Momentum. Analyst prediction: The increasing interest and accumulation of Bitcoin by major investors will contribute to its positive trajectory.
Positive: Predictions for Bitcoin’s All-Time High Post-Halving. Analyst prediction: Experts predict that Bitcoin could reach a peak of $88,000 in 2024 following the upcoming halving event, making it more scarce and valuable.
