- Bitcoin price hit a peak of $51,828 on Wednesday after breaching the $50,000 psychological level earlier this week.
- BTC price rally liquidated $73.82 million in shorts positions.
- Tuesday marked the largest net inflow to Spot Bitcoin ETFs with $631 million in capital poured into BTC.
Bitcoin price crossed $50,000 earlier this week and hit a peak of $51,828 on Wednesday. The asset’s uptrend was supported by a massive influx of capital into Spot Bitcoin ETFs. On February 13, BTC ETFs recorded the single largest daily inflow at $631 million.
Also read: Ripple unveils plans for crypto custody while XRP price trades sideways
Bitcoin price crosses $50,000 in time for Valentine’s Day
Over $73.82 million in short positions were liquidated in the past 24 hours, according to Coinglass data. The largest asset by market capitalization hit two important milestones this week. BTC price crossed the $50,000 psychological level on Monday and Bitcoin’s market capitalization exceeded the $1 trillion mark on Wednesday.
BTC Derivatives Data Analysis. Source: Coinglass Data
Bitcoin’s gains were likely catalyzed by the anticipation surrounding the upcoming halving event in April 2024. Another key catalyst could be the USD inflow to Spot Bitcoin ETFs. February 13 recorded an inflow of $631 million into Bitcoin’s exchange-traded products, a record for the securities product.
BTC ETF flow table. Source: Farside Investors
Jamie Coutts, a crypto analyst on X, believes that Bitcoin’s ongoing rally has the potential to push BTC price to its previous all-time high prior to the halving event. Coutts cites three reasons why this could occur and why BTC price is likely on the path to $69,044 ahead of April 2024.
- Extreme leverage and positioning from Q4 have been cleansed, according to Coutts. The analyst notes that Options Open Interest is down 40% and Futures funding rates are still positive but less “exuberant” than before.
- Bitcoin ETFs are consistently outpacing supply by at least 2:1, and the halving is still over two months away.
- Only 10% of BTC volume has moved at prices above the current level.
With a clean breach of the resistance at $48,200, Bitcoin has no significant overhead resistance to its target of $69,044.
Spot ETF issuers have accumulated over 200,000 BTC since the Securities and Exchange Commission’s (SEC) approval on January 11. This is likely a key driver of gains in the ongoing cycle as demand for Bitcoin is consistent.
OnChain holdings of Bitcoin ETFs. Source: Dune Analytics
Bitcoin price faces no significant resistance on path to $69,044
Bitcoin price is currently in an uptrend. The asset rallied past the $51,000 level and the consistent USD inflow to Spot Bitcoin ETFs is likely catching up. BTC price has support in the imbalance zone between $45,623 and $46,738 in the event of a correction in Bitcoin.
The green bars on the Moving Average Convergence/Divergence (MACD) indicator signal there is potential in the uptrend. Bitcoin price is likely to continue rallying higher, towards its previous all-time high.
BTC/USDT 1-day chart
A daily candlestick close below the $50,000 psychological level could imply that BTC price is likely to dip into the bullish imbalance zone, between $45,623 and $46,738, before continuing its leg up.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC experiences volatility post $100K milestone
Bitcoin rebounds to $97,000 on Friday after a volatile drop to $90,500, following its $100K milestone the day before. Ethereum maintains bullish momentum above key support levels, signaling a potential rally toward $4,000. In contrast, Ripple exhibits bearish tendencies, hinting at further declines.
XRP chosen alongside Bitcoin as treasury assets for Nasdaq-listed Worksport
Ripple's XRP is down 5% on Thursday following an announcement from Tonneau cover manufacturer Worksport that it would add the remittance-based token as part of its corporate treasury.
Gamestop, GME meme coin surge following Roaring Kitty return
Gamestop-based meme coins rose more than 40% on Thursday after popular trader, Keith Gill, stirred excitement in the meme coin sector with a post featuring a Time Magazine picture on social media platform X.
Ethereum Price Forecast: ETH overcomes key hurdle as ETF and staking inflows improve
Ethereum is down 1% on Thursday despite rallying in the European session to overcome a key descending trendline resistance that has lasted for three years. The top altcoin has seen increased bullish sentiment across staking protocols and ETH ETFs.
Bitcoin: A healthy correction
Bitcoin (BTC) experienced a 7% correction earlier in the week, dropping to $90,791 on Tuesday before recovering to $97,000 by Friday. On-chain data suggests a modest rebound in institutional demand, with holders buying the dip. A recent report indicates BTC remains undervalued, projecting a potential rally toward $146K.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.