Bitcoin experienced a significant breakthrough on February 9th as it surpassed the $46,000 mark, effectively overcoming a substantial resistance level at $44,000. This resistance had hindered the asset’s price increases since the introduction of spot Bitcoin ETFs in the United States about four weeks prior. The breakthrough is particularly notable as it signals the conclusion of a corrective phase that saw Bitcoin’s price drop to $38,500 in late January. Markus Thielen, founder of 10x Research, predicts that Bitcoin is poised to reach even greater heights, aiming for $48,000 in the near future. This potential breakout is attributed to a historical trend of significant gains during the Chinese New Year festivities.
Markus Thielen utilizes the Elliott Wave theory, a technical analysis method that identifies repetitive wave patterns, to predict Bitcoin’s future price movements. According to Thielen’s analysis, Bitcoin has completed its wave four retracement, correcting to $38,500, and has now entered the fifth impulsive stage of its upward trend. It is expected that Bitcoin will continue to climb and may reach $52,000 by mid-March. Thielen further anticipates that this bullish trend will extend well into 2025, with the peak anticipated between April and September of that year.
Santiment’s latest analysis highlights Bitcoin’s resurgence above the key resistance level, which is the first time since the retracement caused by the “ETF hangover” that started on January 12th. Raj Karkara, COO of ZebPay, recognizes this achievement as a milestone that reflects the strength and evolution of the crypto landscape. In fact, Fidelity Wise Origin Bitcoin (FBTC) witnessed a net inflow of almost $130.1 million on February 7th, and Ishares Bitcoin Trust (IBIT) had a total volume of $478.5 million on February 8th. The increasing inflows in the ETF market have played a pivotal role in this positive market trend, as ETFs have widened the investor base for Bitcoin.
Bitcoin’s rebound aligns with an increase in holdings among wallets containing 1,000 or more BTC, reaching their peak accumulation in over 14 months. This signifies renewed investor confidence in the asset. Furthermore, Bitcoin’s social volume also appears to be rising, indicating growing interest and engagement with the cryptocurrency. Despite the surge in price, on-chain data reveals that traders have exhibited continued skepticism towards Bitcoin for the third consecutive week. Interestingly, the ratio of BTC on exchanges has hit its lowest point since December 2017, suggesting that investors are not looking to offload their Bitcoin holdings anytime soon.
Bitcoin’s recent surge past the $46,000 mark and its breakthrough of the resistance level at $44,000 mark significant achievements in the cryptocurrency market. Analysts, such as Markus Thielen, predict even greater heights for Bitcoin in the near future. The increasing inflows in the ETF market and the renewed investor confidence indicate a robust and evolving crypto landscape. Furthermore, the rising social volume for Bitcoin reflects growing interest and engagement with the cryptocurrency. Despite skepticism from traders, the low ratio of BTC on exchanges suggests that investors are holding onto their Bitcoin investments for the long term. As Bitcoin continues to make waves in the market, its future trajectory remains an exciting prospect for investors and enthusiasts alike.
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