Bitcoin roared back this week, clawing its technique to $48,207 – its highest point since early January. This fiery ascent follows weeks of muted trading, fueled by concerns about institutional outflows and a post-ETF price dip. But what’s sparking this sudden surge? And may the digital dragon overcome its next hurdle?
Positive Winds Fill Bitcoin’s Sails
Several aspects are propelling Bitcoin’s recent rally:
- Spot ETF Momentum: The long-awaited launch of spot Bitcoin ETFs in January may be finally delivering on its promise. Potential inflows and positive sentiment surrounding these latest investment vehicles are driving interest.
- Halving Horizon: The Bitcoin halving, scheduled for May 2024, looms large. Historically, this event, which reduces the speed of recent Bitcoin creation, has been linked to cost increases, fueling investor optimism.
- Market Synergy: The S&P 500’s recent ascent to record highs appears to be spilling over to the crypto market, making a wave of positive momentum.
- Lunar Luck? Bitcoin often experiences gains across the Chinese Latest Yr, and this yr is not any exception. The “Yr of the Dragon,” with its auspicious connotations, adds one other layer of bullish sentiment.
- ETF Absorption of Selling Pressure: Several ETFs have absorbed over a billion dollars price of Bitcoin selling pressure in recent weeks, indicating underlying demand despite pre-ETF concerns.
Bitcoin currently trading at $47,335 on the every day chart: TradingView.com
But Can Bitcoin Slay The Resistance Dragon?
While the outlook seems vibrant, challenges remain:
- Resistance at $48,500: Bitcoin faces a vital resistance level at $48,500. Breaking through this barrier is essential for a possible latest all-time high.
- Post-ETF Sell-off: Despite the recent surge, Bitcoin stays below its pre-ETF highs, sparking concerns a couple of potential sell-off after the initial excitement fades.
- Volatility Reigns: Crypto stays a notoriously volatile asset, and predicting future price movements is fraught with difficulty.
Experts Weigh In: Bitcoin At $52K
Sylvia Jablonski, CEO of Defiance ETFs, attributes the worth appreciation to “recent inflows into the spot ETFs, the prospect of the halving, and general market momentum.” Nonetheless, she cautions that breaking through resistance levels is rarely guaranteed, and investors should approach any investment with caution.
Meanwhile, Markus Thielen, the founding father of 10x Research and head of research at Matrixport, predicted more rise in bitcoin prices using Elliott Wave theory, a technical study that makes the idea that prices move in repeating wave patterns.
The concept states that price trends evolve in five stages, with waves 1, 3, and 5 serving as “impulse waves” that indicate the first trend. Retracements between the impulsive price movement occur in waves two and 4.
In accordance with Thielen, BTC has begun its final, fifth impulsive stage of its uptrend, aiming to succeed in $52,000 by mid-March, after completing its wave 4 retracement and correcting to $38,500.
Featured image from Adobe Stock, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It doesn’t represent the opinions of NewsBTC on whether to purchase, sell or hold any investments and naturally investing carries risks. You might be advised to conduct your personal research before making any investment decisions. Use information provided on this website entirely at your personal risk.