Bitcoin Surges to Four-Week High with Chinese New Year Boosts

• Bitcoin broke $46,000 for the first time since January, showing a 4% increase in one day and an 8% rise over a week.

• Analysts predict Bitcoin could reach $48,000 soon, driven by historical trends around the Chinese New Year, with potential for further gains towards $100,000.

Bitcoin (BTC) has broken through the $47,000 barrier for the first time since the spot Exchange-Traded Funds (ETFs) debut on January 11, marking a significant milestone in its recent price trajectory.

According to data from CNF, Bitcoin experienced a 4% increase the previous day, reaching $47,344 as of the time of this writing. This surge maintains an 8% increase over the past seven days, indicating a bullish sentiment in the market.

BTC Flexes Muscles, Reclaims $46K Level

Although initially met with a decline in Bitcoin’s value, several ETFs’ approval to bolster its institutional legitimacy has seemingly contributed to its upward momentum. Specialists in crypto Exchange-Traded Products (ETPs) anticipate that the current upward trend may bring early investors in BTC ETFs close to profitability. However, profit-taking may trigger a reversal, potentially testing the $42,000 to $40,000 price range.

Notably, nine US spot Bitcoin exchange-traded funds (ETFs) debuted on January 11, accompanied by converting the over-decade-old Grayscale Bitcoin Trust into an ETF on the same day. This shift towards ETFs is expected to broaden the investor base for Bitcoin significantly. The newly introduced funds have already attracted a net inflow of $8 billion, while the outflow from the Grayscale fund, totaling $6 billion since its conversion, showing signs of slowing down.

The quadrennial halving event, slated for April, draws considerable attention from investors and analysts alike. This event occurs approximately every four years and reduces the quantity of Bitcoin miners receive for securing the network. The upcoming halving will drop rewards to 3.125 coins per block from the current 6.25 coins. Historical data suggests that previous halving events have preceded strong bull runs in Bitcoin’s price.

Market Predictions Point Towards Further Upside

Markus Thielen, head of research at Matrixport, anticipates Bitcoin heading towards $48,000 in the near future, driven by historical gains observed during the Chinese New Year festival. Thielen’s research indicates that Bitcoin often experiences significant price increases around this time, with past data suggesting a positive correlation between the festival and Bitcoin’s price movements.

🚀 Our #Bitcoin Prediction on Point, Riding the Crypto Wave with Precision!https://t.co/RTZWn0zbsY pic.twitter.com/EW0zCkUC0b

— 10x Research (@10x_Research) February 8, 2024

Market analysts and experts are optimistic about Bitcoin’s future performance. Notably, top market analyst Ali Martinez has highlighted a rare “Super Trend” signal on Bitcoin’s monthly charts, signaling a potential “buy” opportunity. Martinez points out that on four previous occasions when this signal emerged, Bitcoin witnessed substantial price surges ranging from 828% to 169,172%. Based on this trend, Bitcoin could be poised for a surge of over 100%, potentially surpassing the $100,000 price mark.

The Super Trend just flashed a buy signal on the #Bitcoin monthly chart, a tool known for its precision in predicting $BTC bull markets.

The four buy signals it has issued since #BTC inception have all been validated, leading to gains of 169,172%, 9,900%, 3,680%, and 828%,… pic.twitter.com/83GtqJNryW

— Ali (@ali_charts) February 8, 2024

Analysts at LMAX Digital also share a bullish outlook, expecting Bitcoin to continue its upward trajectory and possibly surpass the $50,000 mark. According to technical analysis using Elliott Wave theory, Bitcoin’s recent price movements indicate the beginning of its final, fifth impulsive stage of the rally, potentially aiming for $52,000 by mid-March after completing a corrective phase.

Despite the recent surge, Bitcoin still remains approximately $23,000 below its all-time high set in 2021 during the COVID-19 pandemic-era bull run fueled by easy money.

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