Bitcoin experienced a significant breakthrough on February 9th as it surged past the $46,000 mark. This breakthrough came after overcoming a major resistance level at $44,000, which had been impeding price increases ever since the introduction of spot Bitcoin ETFs in the United States four weeks earlier. The leading cryptocurrency reached its highest point in a month, signalling the end of a corrective phase that saw the asset drop to $38,500 in late January.
Auspicious Period and Predictions
This surge in Bitcoin’s price coincides with East Asia’s major festival that marks the beginning of an auspicious period in the Chinese Zodiac. Many experts, including Markus Thielen, the founder of 10x Research, predict that Bitcoin is poised to reach even greater heights. Thielen attributes this potential breakout to a historical trend of significant gains during the Chinese New Year festivities. Leveraging the Elliott Wave theory, which identifies repetitive wave patterns to predict future price movements, Thielen believes that Bitcoin has completed its wave four retracement and has now entered the fifth impulsive stage of its upward trend. According to Thielen’s analysis, the crypto asset is expected to climb to $52,000 by mid-March. Furthermore, Thielen anticipates that the bull run will continue well into 2025, with the peak anticipated between April and September of that year.
Santiment, a leading provider of on-chain and social media insights for cryptocurrencies, has analyzed Bitcoin’s resurgence above the key $44,000 level. This marks the first time since the retracement began on January 12th. Raj Karkara, the COO of ZebPay, commented on this achievement, stating that Bitcoin’s surge past $46,000 signifies a robust and evolving crypto landscape. Karkara also highlighted the increasing inflows in the ETF market, which played a pivotal role in this positive market trend. The accessibility of ETFs is expanding the investor base for Bitcoin.
Renewed Investor Confidence
Interestingly, Bitcoin’s rebound is linked to the increase in holdings among wallets containing 1,000 or more BTC. These wallets have reached their peak accumulation in over 14 months, indicating renewed investor confidence in the cryptocurrency. Additionally, Bitcoin’s social volume, which measures online mentions and discussions related to the digital asset, appears to be rising. This is a positive indication of growing interest and engagement within the Bitcoin community.
Despite the surge in price and renewed investor confidence, on-chain data reveals that traders continue to exhibit skepticism towards Bitcoin for the third consecutive week. This suggests that some traders are not fully convinced of the sustainability of Bitcoin’s upward trend. However, there is a significant observation to note – the ratio of Bitcoin on exchanges has hit its lowest point since December 2017. This indicates a sentiment among investors that they are not looking to offload their Bitcoin tokens anytime soon. It is a clear sign of long-term bullishness and conviction in the cryptocurrency.
Bitcoin’s recent surge past the $46,000 mark is a significant achievement that indicates the end of a corrective phase and the beginning of a new bullish trend. The market sentiment is largely positive, with predictions of further price increases in the coming months. The increased accumulation of Bitcoin in large wallets, along with rising social volume, highlights renewed investor confidence. However, there are still skeptics in the market, and the long-term sustainability of the current trend remains to be seen. Nevertheless, the low exchange balance suggests that many investors are holding onto their Bitcoin, anticipating further gains in the future.