For the first time since spot ETFs debuted on January 11, Bitcoin (BTC) has surpassed $46,000. According to data from Coingecko, at the time of publication, BTC was up 3.4% to $46,075 the previous day, up 6% from the previous seven days.
Bitcoin flexes its muscles and reaches back to the $46,000 mark
Despite the approval of several highly anticipated exchange-traded funds designed to bolster its institutional legitimacy, Bitcoin's 2024 got off to a rocky start. However, things are improving as Bitcoin is now trading above the $46,000 level again.
Laurent Ksiss, cryptocurrency exchange-traded products (ETPs) specialist at CEC Capital, mentioned that breaking the $45,000 mark could make the early investors of the BTC ETF close to profitable if the current uptrend continues. He also noted that this dynamic could lead to some investors taking profits, potentially triggering a reversal and testing the $42,000-$40,000 levels.
After the launch of 10 ETFs in January, the price of BTC experienced an unexpected decline. The value plunged after briefly reaching $49,000 as one of the funds, Grayscale, began transferring significant portions of its cryptocurrency to Coinbase.
BTCUSD is currently trading at $46,165 on the daily chart: TradingView.com
This was because before Grayscale converted the Bitcoin Fund ETF into an open-ended fund, investors had to hold their shares for at least six months before they could make a withdrawal. Many of the investors were eager to cash out and redeem their shares when the company converted to an ETF in January.
Whales’ appetite for BTC is increasing
As a result, Grayscale sold massive amounts of Bitcoin, causing its price to plummet. At times the price traded below $39,000. However, it appears that the sell-off has ended and Bitcoin is rising again, partly due to large holders snapping up the asset.
Meanwhile, Markus Thielen, head of research at Matrixport and founder of 10x Research, says Bitcoin (BTC) is heading towards $48,000 in the near term after breaking out on a solid track record of gains during the Chinese New Year.
Because Bitcoin often rises more than 10% around Chinese New Year, starting Feb. 10, the following days are statistically extremely important, according to Thielen's research on Thursday.
Every time traders purchased Bitcoin three days before the start of Chinese New Year and sold it 10 days later, the price of Bitcoin increased over the past nine years, Thielen said.
Bitcoin is said to have reached $50,000
In a related development, LMAX Digital stated that it expects Bitcoin to continue rising and potentially reach the $50,000 mark.
According to LMAX Digital, Bitcoin has technically broken out of a range and may be aiming to rise to a new annual high above $50,000.
Using Elliott Wave Theory, a technical study that assumes prices move in repeating wave patterns, Thielen predicted greater upside potential 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. In waves two and four, retracements occur between the impulsive price movement.
Thielen said Bitcoin has entered the final, fifth impulse phase of its rally and is aiming to reach $52,000 by mid-March after completing its wave 4 retracement and correcting to $38,500.
Featured image from Adobe Stock, chart from TradingView
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