Bitcoin Price Soars, Smashing Through $45,000 On The Back Of Two Key Factors
09 February 2024 - 6:30AM
NEWSBTC
In the past 14 days, the Bitcoin price has displayed a significant
uptrend of 14.5%, signaling a resurgence in bullish sentiment. This
rally comes as Bitcoin spot exchange-traded funds (ETFs) have been
trading for nearly a month, with the market already factoring in
this development. As a result, Bitcoin is back on its natural
course, gaining momentum ahead of the scheduled halving in April.
Currently, Bitcoin has not only regained its bullish momentum after
a brief dip to the $38,500 level but has also surpassed the $45,300
mark. It now edges closer to its 25-month high of $49,000, with the
$50,000 milestone within reach. Achieving this level would
significantly narrow the gap between the current price and
Bitcoin’s all-time high (ATH) of $69,000. However, what are the
main catalysts behind this uptrend, and how far can the Bitcoin
price climb? Reduction Of GBTC Flows And Net Positive BTC Spot ETF
Inflows According to the latest analysis by QCP Capital, two key
factors are driving Bitcoin’s upward trajectory: Daily
outflows from the Grayscale Bitcoin Trust (GBTC) have decreased
from $500-600 million to $100-200 million. Simultaneously, total
inflows across all Bitcoin ETFs are now positive. This shift
in the GBTC flows, and the emergence of net positive BTC spot ETF
inflows contribute to the current bullish trend, according to the
crypto trading firm’s analysis Related Reading: Ethereum Breaks
Above $2,400: This Metric Points To Further Upside Additionally,
notable price movements have been observed around “spot ETF
fixings.” Between 3-4 pm EST, QCP has recorded that the Bitcoin
price tends to tick higher, possibly due to the one-hour
observation window used by the BlackRock ETF (IBIT) to calculate
its Net Asset Value (NAV). Conversely, downward pressure is
typically observed after 4 pm EST as GBTC employs a point fix,
leading market makers to sell around and after the fix. Strong
Performance In US Equities Despite the Federal Reserve’s hawkish
stance and higher US yields driven by robust February Non-Farm
Payroll data (353k actual vs. 180k expected), US equities continue
outperforming. Companies like NVDA and META have rallied due
to strong earnings and positive headlines. Underallocated investors
will likely continue buying any equities dips as they chase
returns. According to the analysis, this bullish sentiment is
expected to “spill” over into BTC and Ethereum (ETH), further
fueled by the upcoming BTC halving and the ETH spot ETF narratives.
Ultimately, the trading firm assesses significant interest in
accumulators, which enable investors to purchase Bitcoin or ETH at
a “substantial discount” to the current spot price. This strategy
is believed to present an attractive opportunity for bullish
investors looking to build long positions throughout the year.
Bitcoin Price Faces Strong Barriers On Its Way To $50,000 Despite
the uptrend, notable resistance levels could impede further upward
movement and potentially lead to a consolidation phase for
Bitcoin. To assess the nearest-term resistances accurately,
the 1-hour chart indicates potential price paths for Bitcoin in the
coming days if these bearish thresholds are breached. In the
immediate time frame, the $45,500 level emerges as Bitcoin’s next
resistance level. This level previously marked a correction in the
Bitcoin price shortly after the introduction of ETF trading.
Subsequently, the next target would be the $46,600 level if the
immediate resistance at $45,500 is surpassed. However, while these
two thresholds may present challenges, no significant resistance
levels are evident on Bitcoin’s hourly chart until the $48,500
level. This particular level represents the final hurdle for
Bitcoin before reclaiming its previous high reached on January 11,
immediately following the approval of ETFs by the US Securities and
Exchange Commission (SEC). Related Reading: Shiba Inu Price Breaks
2-Month Downtrend, Eyes New Peaks Considering the combined factors
of Grayscale’s reduced sell-off and the overall performance of the
equity market, alongside renewed investor sentiment, Bitcoin could
potentially surge to previous highs and even surpass them, marking
new highs since the end of the crypto winter. The key factor
to be seen is how Bitcoin’s price will respond when encountering
these highlighted resistance walls and whether the buying pressure
will be sufficient to propel Bitcoin back on track toward the
bullish momentum observed at the beginning of 2024. Featured image
from Shutterstock, chart from TradingView.com
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