Bitcoin Crosses $46,000 Mark as Chinese New Year Celebrations Begin
Bitcoin (BTC) has reached a one-month high, crossing the $46,000 mark early Friday, according to CoinDesk. The CoinDesk 20 Index, which measures the largest cryptocurrencies, also jumped over 2% during this time. This is a significant development as Bitcoin has historically seen gains around the Chinese New Year period.
10X Research predicts that Bitcoin could rise to as much as $48,000 in the coming days, a gain of at least 11%. In the past two weeks, the asset has added nearly 15%, easing losses as the anticipated bitcoin exchange-traded funds (ETFs) turned out to be a sell-the-news event.
Several ETFs have absorbed more than a billion dollars worth of bitcoin selling pressure in the past few weeks, indicating demand. On-chain analysis firm CryptoQuant noted that bitcoin movements out of miner wallets, which signify selling, seemed to slow.
Alex Kuptsikevich, FxPro senior market analyst, said in an email to CoinDesk that Bitcoin rose above its 50-day moving average late Wednesday, confirming the bullish medium-term trend and easing fears of a deeper correction. He added that on a weekly basis, bitcoin and the broader crypto market have gained strength after a long period of consolidation and are now poised to make new highs.
Conclusion
The recent surge in Bitcoin's price is a positive sign for the cryptocurrency market, especially as it coincides with the Chinese New Year celebrations. The gains are also a result of the easing of fears of a deeper correction and the increasing demand for Bitcoin ETFs. As the broader crypto market gains strength, we can expect to see new highs in the coming days.
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