Bitcoin bulls reawakened this week, sending the flagship cryptocurrency surging to its highest level since mid-January. Bitcoin surged past $46,000 in early trading on February 9, posting an 8% weekly gain.
The new momentum comes as analysts predict further upside ahead of Bitcoin’s next halving, which is just two months away.
TLDR
- Bitcoin surged past $46,000 on February 9, marking its highest level since January, amid growing market optimism.
- Analysts expect the price target to reach $51,000 ahead of the Bitcoin halving event scheduled for April.
- The rise coincides with historic highs for the S&P 500 stock market index and has sparked theories that cryptocurrencies and stocks could continue to rise together.
- Bitcoin’s price surge has devastated overleveraged traders, especially short sellers, resulting in $115 million in liquidations over the past day.
- Theories abound as to whether Bitcoin’s five-month trading range will last until the halving, or whether it will finally begin a new bull market.
The price surge coincides with historic all-time highs for the S&P 500 stock index, which has risen 900 points over the past three months. Some suggest that the simultaneous rise means that cryptocurrencies and stocks could continue their upward trend together as under-allocated investors flock in.
Nonetheless, Bitcoin faced selling pressure near $46,400 as profit-taking emerged. Nonetheless, various experts predict further progress, with a target of up to $51,000 before the April halving. This event, which occurs roughly every four years, halves the block rewards paid to Bitcoin miners to control supply.
Just came in: #Bitcoin $46,000 or more pic.twitter.com/KYBWT71795
— CoinGecko (@coingecko) February 9, 2024
Recent bullish price action has expanded Bitcoin’s five-month trading range to between approximately $38,000 and $48,000. Whether the persistent sideways breakaway will continue until the halving or finally lead to a decisive breakout remains a debate among analysts.
In the short term, Bitcoin’s surge to $46,000 led to the liquidation of $115 million worth of futures contracts over the past day, mostly short positions. This is a sign that overly bearish traders are still on the wrong side of Bitcoin’s continued strength.
Nonetheless, warning signs still remain as Bitcoin struggles with overhead resistance levels. Some advise caution unless support at the 50-day moving average (currently around $43,000) remains firm. This will maintain the technical bullish case for Bitcoin as the halving approaches.
The price trajectory of Bitcoin, the world’s first and still most valuable cryptocurrency, could set the tone for broader cryptocurrency market sentiment. The ability to maintain the upper limit of the multi-month range near the April halving will determine whether the next phase in Bitcoin’s long-term bull market begins in the second quarter of 2024.