Bitcoin enthusiasts were treated to an electrifying start to the weekend as the leading cryptocurrency surged above the $46,000 mark, breaking a month-long lull. The excitement peaked when Bitcoin reached an impressive high of $46,318. However, the elation was short-lived as the price experienced a swift correction, dropping to $45,885 within a mere two-hour window. Presently, Bitcoin is trading at $46,129.44, marking a 3.38% increase over the past 24 hours. Simultaneously, trading volume has surged by 14.19%.
Adding to the fervor, Santiment, a renowned data aggregator, unveiled that the supply of Bitcoin on exchanges has plummeted to its lowest level in over six years as the price soared past $45,000. This decline in exchange supply is attributed to a prevailing sentiment of bearishness among investors over the past week, with just 5.3% of BTC currently held on exchanges—the lowest since December 2017.
The looming 2024 halving event remains a focal point for Bitcoin aficionados, with anticipation building as the event, expected around April, draws nearer. Preceding the halving, Bitcoin has witnessed notable movements characterized by both accumulations and sell-offs. Notably, while Grayscale has been actively selling, MicroStrategy has been steadfast in its accumulation efforts. Data from Lookonchain revealed that between December 27th and February 5th, MicroStrategy acquired a total of 850 BTC.
What is Bitcoin Bulls Target?
Amidst these dynamic developments, analyses of Bitcoin’s price movements paint a bullish picture. While the daily chart hints at a potentially bearish trend, with the 9-day exponential moving average (EMA) positioned below the trading price at $44,037, the daily relative strength index (RSI) indicates an overbought situation, currently standing at 68.
In terms of price predictions, should Bitcoin surpass the $47,016 threshold. It is likely to witness further surges, potentially testing the $48,999 resistance level. Conversely, a dip below the $41,479 mark could signal a downward trend, potentially testing the $39,908 support level.