...
Explore Bitcoin's ascent beyond $46K at the onset of the 'Long' Year, accompanied by a relaxation in ETF sell-off worries.
Deb Mukhuty
As the Chinese New Year approaches, Bitcoin experiences a notable uptick, challenging conventional market patterns.
Factors such as cultural symbolism and market dynamics converge to drive Bitcoin's recent price surge.
An interesting trend has been observed in the past where the value of Bitcoin tends to increase around the Chinese New Year.
This year, we have seen Bitcoin prices rise in the last week, suggesting a significant demand for it. On the other hand, the selling pressure from miners and ETF holders has decreased, which may also contribute to the rise in prices. It will be interesting to see how this trend plays out in the coming weeks and how it impacts the cryptocurrency market as a whole.
Early last Friday, Bitcoin (BTC) jumped to $46,000 as the largest cryptocurrency index, the CoinDesk 20 Index (CD20), increased by more than 2%.
A month ago, the most valuable cryptocurrency based on market capitalization peaked in conjunction with East Asia's biggest festival of the year and the beginning of the Chinese zodiac's most auspicious time of the year.
Mandarin Chinese word for "dragon" is pronounced similarly to the word "long." This similarity has increased its memetic value among cryptocurrency dealers, who often associate the dragon with good fortune and power. It's interesting how language and culture can shape our perceptions of things like cryptocurrency!
According to 10X Research, which released a note on Feb 6th projecting a gain of at least 11%, Bitcoin might rise to as high as $48,000 in the following days as the asset traditionally exhibits gains during the Chinese New Year.
Bitcoin clearing the $43,800 level was a significant breakout, according to 10X Research.
Source: coindesk.com
According to data, the asset has gained about 15% over the last two weeks, mitigating losses after it was revealed that the expected bitcoin exchange-traded funds (ETFs) were a sell-the-news event. The S&P 500 and Nasdaq-100 indexes reached record highs on Thursday, causing the rise to reach its greatest point since January 12.
Since then, more than $1 billion worth of selling pressure on Bitcoin has been absorbed by a few ETFs, indicating demand.
According to a notice released last Thursday by the on-chain intelligence company CryptoQuant, there appears to have been a slowdown in the movement of bitcoin out of miner wallets, which is a sign of selling.
However, pointing to strength in weekly moves, several traders claimed that the recent action in the bitcoin price has allayed fears of a further sell-off.
10X Research predicted that Bitcoin would rise more using the Elliott Wave theory, a technical analysis based on the idea that prices move in recurring wave patterns. The idea states that price trends evolve in five stages, with waves 1, 3, and 5 serving as "impulse waves" that indicate the primary trend. Retracements between the impulsive price movement occur in waves two and four. According to Thielen, Bitcoin finished its wave four retracement by falling to $38,500. It has then begun the final, impulsive stage of this rally, which is aimed at $52,000 by mid-March.
How can cultural events impact your investment decisions in cryptocurrencies? Share your thoughts and insights with us.
Deb Mukhuty is Lorem ipsum dolor sit, amet consectetur adipisicing elit. Illum consectetur quas nisi obcaecati. Qui ratione ab dicta similique ut consequatur at consequuntur, a laudantium sit nobis, neque provident sapiente sequi hic saepe facilis esse ipsa.
