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Bitcoin’s Lunar New Year Momentum: Soars Beyond $46,000, Defying Resistance

Bitcoin’s Lunar New Year Momentum: Soars Beyond $46,000, Defying Resistance

Bitcoin surged past the $46,000 mark on February 9th after overcoming a significant resistance level at $44,000. This resistance had been a barrier to price increases since the introduction of spot Bitcoin ETFs in the United States about four weeks earlier.

The leading crypto asset, buoyed by the onset of East Asia’s major festival marking the beginning of an auspicious period in the Chinese Zodiac, reached its highest point in a month.

Bitcoin Poised for $48,000 Breakthrough

The latest breakthrough marks a notable achievement, signaling the conclusion of a corrective phase that had seen the asset drop to $38,500 in late January.

Markus Thielen, founder of 10x Research, predicted that Bitcoin is poised to reach $48,000 in the near future. Thielen attributed this potential breakout to a historical trend of significant gains during the Chinese New Year festivities.

Leveraging the Elliott Wave theory – a technical analysis method that identifies repetitive wave patterns – to predict future price movements. He noted that Bitcoin had completed its wave four retracement, correcting to $38,500, 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.

Thielen further anticipates that the bull run will continue well into 2025, with the peak anticipated between April and September of that year.

Bitcoin Rebounds from ‘ETF Hangover’

Santiment’s latest analysis reveals Bitcoin’s resurgence above the key level, marking the first time since the ‘ETF hangover’ retracement started on January 12th.

In a statement to CryptoPotato, Raj Karkara, COO, ZebPay said,

“As Bitcoin achieves a remarkable milestone, surging past $46,000, it signifies a robust and evolving crypto landscape. On Thursday, Feb 7th, Fidelity Wise Origin Bitcoin (FBTC) saw a net inflow of close to $ 130.1 million. Notably, Ishares Bitcoin Trust (IBIT) saw a total volume of $478.5 million on Feb 8th. Moreover, increasing inflows in the ETF market played a pivotal role in this positive market trend. The accessibility of ETFs is widening the investor base for Bitcoin.”

Interestingly, this rebound is linked to the increase in holdings among wallets containing 1,000 or more BTC, reaching their peak accumulation in over 14 months, indicating renewed investor confidence. In addition to increased accumulation, Bitcoin’s social volume also appears to be rising.

Another observation shed light on Bitcoin’s persistent dominance over altcoins. Despite the surge, on-chain data revealed that traders exhibited continued skepticism towards the asset for the third consecutive week. Remarkably, the ratio of BTC on exchanges hit its lowest point since December 2017, suggesting a sentiment that investors are not looking to offload the tokens any time soon.