- February 11, 2024
- Posted by: [email protected]
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Bitcoin witnessed a remarkable surge on Saturday, soaring to around $47,450, marking an impressive 3.25% uptick. This surge stands as the most significant weekly gain for Bitcoin in 4 months, surpassing the crucial $46,000 milestone. Simultaneously, Bitcoin Exchange-Traded Funds (ETFs) experienced their third-largest single-day inflow, fueling speculation about a potential breakthrough to the elusive $50,000 threshold.
Amidst the digital currency buzz, legal challenges confront the NBA regarding its promotion of Voyager Digital, adding another layer of intrigue to the Bitcoin price prediction narrative. The legal turmoil adds complexity to the evolving landscape, influencing market sentiments.
As the anticipation for April’s halving event and reduced ETF outflows fueled a 5% jump to one-month highs of $47,453, analysts attribute the surge to pre-halving purchasing. The imminent halving aims to limit the Bitcoin supply, historically leading to post-event price spikes. The recent approval of the first spot Bitcoin ETFs in the US has further elevated the mood and contributed to the price increase.
Historically, Bitcoin has performed well in the lead-up to US elections, aligning with halving cycles. The decrease in ETF outflows, particularly from Grayscale, indicates sustained support for spot cryptocurrency prices. Despite the historically negative impact of a stronger dollar on cryptocurrencies, the predicted decline in this effect adds to the optimistic outlook for Bitcoin prices.
Spot Bitcoin ETFs reported their third-largest inflow on February 8th, totaling $403 million, even as Grayscale Bitcoin Trust saw outflows of over $100 million. The total inflows since their introduction on January 11 have surpassed $2.1 billion, signaling robust demand. The leading inflow came from BlackRock iShares Bitcoin Trust, reaching $204 million, surpassing GBTC’s daily trading volume.
The net flows data reveals the removal of 8,698 BTC from the market, coupled with the approaching Bitcoin halving in less than 70 days, indicating a reduction in supply. Growing institutional interest in BTC further suggests potential upward pressure on prices, contributing to a persistently optimistic market outlook.
However, legal challenges involving the NBA and Voyager exchange, leading to a class-action lawsuit, present a potential threat to cryptocurrency investments. The lawsuit alleges gross negligence by the NBA, causing $4.2 billion in investor losses and highlighting regulatory concerns in cryptocurrency advertising.
As Bitcoin’s current valuation hovers around $47,475, maintaining a dominant market cap of $931.8 billion, technical analysis suggests caution. The 4-hour chart indicates crucial price levels and potential resistance and support zones. While the trend leans towards bullishness, technical indicators, particularly the overbought RSI, suggest the possibility of a retracement.
Investors are advised to observe key levels, considering buying opportunities above $46,700 and monitoring for potential trend shifts or decreased buyer momentum if prices fall below $48,200. A candlestick closing below $48,200 could signal a weakening upward drive, potentially leading to a bearish correction.
