Bitcoin (BTC) surpassed $46,000 on Friday, with the CoinDesk 20 Index (CD20), which measures the largest cryptocurrencies, increasing by over 2%. The leading crypto by market cap reached a month-long high as East Asia celebrated the start of what is considered one of the luckiest periods according to the Chinese Zodiac. In Mandarin Chinese, the word for dragon sounds similar to “long,” which has gained significance among crypto traders. Predictions suggest that Bitcoin could potentially rise to $48,000 in the next few days, as data shows that the asset historically experiences gains around the Chinese New Year period, with a predicted gain of at least 11%, according to 10X Research.
Over the past two weeks, the asset has seen a nearly 15% increase, helping to mitigate losses linked to the anticipated bitcoin exchange-traded funds (ETFs) that turned out to be a sell-off event. This rise to its highest level since January 12 coincides with the S&P500 and Nasdaq-100 indices setting all-time highs on Thursday. Several ETFs have absorbed over a billion dollars worth of bitcoin selling pressure in recent weeks, highlighting demand. Additionally, CryptoQuant, an on-chain analysis firm, reported on Thursday that bitcoin outflows from miner wallets (a sign of selling) seemed to have slowed down.
Meanwhile, some traders have observed that recent bitcoin price movements have reduced concerns about a further sell-off, noting strength in weekly movements. Alex Kuptsikevich, FxPro’s senior market analyst, confirmed the bullish medium-term trend, stating that Bitcoin’s rise above its 50-day moving average has eased concerns of a deeper correction. He also indicated that on a weekly basis, both Bitcoin and the broader crypto market have shown strength after a long consolidation period and are now poised for new highs.
