Bitcoin Crosses $46K as Year of 'Long' Begins, Easing ETF Sell-Off
Bitcoin (BTC) crossed $46,000 early Friday as the CoinDesk 20 Index (CD20) jumped over 2%. This rise coincided with the start of the Chinese New Year, which is believed to be a lucky period for crypto traders.
Bitcoin Surges During Chinese New Year
Bitcoin reached a one-month high of $46,000 as East Asia celebrated the start of the Chinese New Year, a period traditionally associated with gains for the cryptocurrency.
The word for dragon in Mandarin Chinese is pronounced similarly to 'long,' which adds to the memetic value of Bitcoin among traders.
Bitcoin could increase further to $48,000 in the coming days, according to 10X Research, which predicts a gain of at least 11%. This follows a recent rise of nearly 15% in the past two weeks.
Easing of ETF Sell-Off and Miner Selling Pressure
Bitcoin's recent gains can be attributed to the easing of selling pressure from ETF holders and miners. Several ETFs absorbed over a billion dollars worth of Bitcoin selling pressure in the past few weeks, indicating strong demand.
Additionally, on-chain analysis firm CryptoQuant observed a slowdown in Bitcoin movements out of miner wallets, which typically signify selling.
Traders are optimistic about Bitcoin's price action as it rose above its 50-day moving average, confirming a bullish trend and alleviating concerns of a deeper correction.
Outlook and Market Analysis
Bitcoin and the broader crypto market have gained strength after a period of consolidation and are now poised to make new highs, according to Alex Kuptsikevich, FxPro senior market analyst.
Some analysts predict that Bitcoin could rise further during the Chinese New Year period, historically a favorable time for the cryptocurrency.
Investors are encouraged to stay updated on market trends and movements as Bitcoin continues to show resilience and potential for growth.
