Bitcoin (BTC) broke through strong resistance near $49,000 and hit the $50,000 mark. This is a price that the digital currency has not seen since December 2021.
Based on the assumptions of technical analysis, BTC may find new resistance near $52,000, an area that has bounced or traded sideways in the past. Furthermore, if it fails to make a significant move above $50,000, it could become a new resistance level and could trade sideways around that price for some time.
this Buying pressure from U.S. Bitcoin ETF issuing company appears to be the main bullish driver of this rally. The amount of BTC entering ETFs has been changing for a month, but has always been increasing.
For example, the chart below shows the amount of BTC held by BlackRock Inc.’s iShares Bitcoin Trust ETF (IBIT):
It can be considered that many funds and large institutional investors are gradually deciding to invest their funds in these financial products. CriptoNoticias reported that such investors are cautious, and many of them are still evaluating the 11 U.S.-approved Bitcoin ETFs to decide which product to choose.
Additionally, considering that we are still 3 to 4 months away from the next halving (an event that typically drives BTC prices higher), many investors may use this time to accumulate BTC. Based on the simple laws of supply and demand, this causes prices to rise.
The altcoin market has also accompanied this rise. At the time of this publication, Dymension, Beam and Kaspa lead the wayas they are the highest-rising cryptocurrencies over the past seven days, as shown in the table below:
CriptoNoticias reports Certain developments and advancements in Dymension and Beam have fueled the rise of these alternative cryptocurrencies.
Updated February 12, 2024: The reasons for the price increase were explained in detail.