Bitcoin’s price skyrocketed by 12% on February 16th, hitting $24,903, which is the highest level seen since August 2022, according to data provided by CoinGecko.
What Caused Bitcoin’s Spike?
The cryptocurrency’s surge can be attributed to mild accumulation from traders who hold between 100 and 1,000 BTC, as reported by Santiment. In the first six weeks of 2023, Bitcoin increased by approximately 50%, reaching its peak on Feb. 16. At the time of writing, Bitcoin was trading at $24,567.
On-chain analytics firm Santiment notes that the demand for Bitcoin is rising among investors who are buying between 100 to 1,000 BTC. This indicates a bullish trend, with buyers expecting further price gains in the near future.
Institutional investors and funds have invested nearly $1.6 billion into the cryptocurrency market since Feb. 10, according to Lookonchain, an on-chain data provider. The analysis is based on USDC stablecoin deposits and Circle withdrawals from that time. This surge in funding is a significant factor in the current price surge of Bitcoin.
During the surge, the BTC/USD pair broke above a few continuation patterns at $23,900 on the hourly chart. The pair almost reached the $25,000 resistance zone and settled well above the 100 hourly simple moving average.
As of now, the next major resistance level is near the $25,300 zone, and a clear move above this level could initiate another steady increase. Bitcoin could rise toward the $25,700 level, with the next resistance being near the $26,200 level, which bears may strongly oppose.
Traders, Proceed With Caution!
This price surge indicates a persistent bullish trend for Bitcoin. Although it’s unclear how long this rally will continue, institutional investors and traders are still optimistic about Bitcoin’s long-term prospects.
Investors should monitor the aforementioned resistance levels to better understand where the market is headed. However, with the growing demand and institutional interest in Bitcoin, it is likely that the cryptocurrency will continue to be an attractive investment opportunity in the coming months.
It is important to exercise caution and conduct thorough research before making any investment decisions in the volatile world of cryptocurrencies.
Source: https://coinpedia.org/bitcoin/bitcoin-btc-bulls-are-back-with-vengeance-what-sparked-the-12-rally-and-whats-next/