The Bitcoin bulls reawakened this week, sending the flagship cryptocurrency soaring to its highest level since mid-January. Bitcoin surged past $46,000 during early trading on February 9th, notching an 8% weekly gain.
The renewed momentum comes as analysts predict further upside ahead of Bitcoin’s next halving event now just two months away.
TLDR
Bitcoin surged past $46,000 on February 9th, its highest price level since January amid growing market optimism.
Analysts predict further upside ahead of Bitcoin’s upcoming halving event in April, with price targets as high as $51,000.
The gains coincide with historic new highs for the S&P 500 stock market index, sparking theories that crypto and equities may continue rising in tandem.
Bitcoin saw $115 million in liquidations over the past day as its price spike wrecked overleveraged traders, especially short sellers.
Theories abound whether Bitcoin’s 5-month trading range will persist up to the halving or finally break out to kickstart a new bull market.
The price spike aligns with historic new all-time highs for the S&P 500 stock index, which gained 900 points over the past three months. Some suggest the tandem gains indicate crypto and equities may continue trending upward together as underallocated investors pile in.
Nonetheless, Bitcoin faced selling pressure near $46,400 as profit-taking emerged. Still, various experts eye further advances, with targets as high as $51,000 prior to the halving in April. That event, occurring roughly every four years, cuts the block rewards paid to Bitcoin miners in half to control supply.
JUST IN: #Bitcoin above $46K pic.twitter.com/KYBWT71795
— CoinGecko (@coingecko) February 9, 2024
The recent bullish price action extends Bitcoin’s five-month trading range, bounded between roughly $38,000 and $48,000. Whether that persistent sideways churn will continue up to the halving or finally give way to a decisive breakout remains a debate among analysts.
In the nearer term, Bitcoin’s spike above $46,000 liquidated over $115 million worth of futures contracts in the past day, predominantly short positions. This signals that overly bearish traders are still being caught on the wrong side of Bitcoin’s enduring strength.
Nonetheless, warning signs remain as Bitcoin struggles with overhead resistance levels. Some advise caution unless support at the 50-day moving average — currently around $43,000 — can continue holding firm. That would maintain the technical bull case for Bitcoin as the halving draws closer.
As the world’s first and still most valuable cryptocurrency, Bitcoin’s price trajectory may set the tone for broader crypto market sentiment. Its ability to maintain the upper bound of its multi-month range near April’s halving will determine whether the second quarter of 2024 kickstarts the next leg in Bitcoin’s long-term bull market.
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