Bitcoin (BTC) is trading up 8.5% from Tuesday’s closing price, with the asset currently at $24,172.77, up 8.64% from the opening price. The asset has been on a steady uptrend, climbing above the $24,500 level and nearing its 61.8% Fibonacci retracement of $25,967 on its 12H chart.[0] This could be the next bullish target for Bitcoin.[1]
The cryptocurrency market saw a huge jump of 10% on February 15, adding over $100 billion to the investors’ wealth.[2] Bitcoin (BTC) is trading 11.72% up at a price of $24,702 and a market cap of $476 billion, while Ethereum (ETH) is trading 9% up at a price of $1,686.
Data from Lookonchain reveals that funds and institutions have poured nearly $1.6 billion into the crypto market since February 10.[3] This increase was mainly derived from USDC stablecoin deposits and withdrawals on Circle.[4]
The surge of Bitcoin (BTC) to its six-month high of $24,800 on February 16 was mainly driven by the decrease in risk aversion and mild accumulation from 100 to 1,000 BTC traders. The jump also came in the wake of the U.S. Federal Reserve’s interest rate hikes and the New York State Department of Financial Services’ notice to Paxos to halt creating new Binance USD (BUSD) stablecoins.[5]
Whales have also responded to Bitcoin’s price drop by transacting at their highest rate in three months. This, coupled with the recent surge of funds into the crypto market, is leading many traders to believe that Bitcoin may be offering a short-term ‘buy the dip’ opportunity.
In conclusion, Bitcoin’s bullish rally is continuing and the asset is close to breaking the $25,000 key level. The uptrend is a result of a combination of factors such as the decrease in risk aversion and the Fed’s interest rate hikes, along with the increase in funds flowing into the market and the whales’ response to Bitcoin’s price drop. If Bitcoin continues to perform well, it could signal another steady increase for the cryptocurrency.[6]
0. “Bitcoin price rally fails to turn derivatives traders bullish, here’s what to expect” FXStreet, 16 Feb. 2023, https://www.fxstreet.com/cryptocurrencies/news/bitcoin-price-rally-fails-to-turn-derivatives-traders-bullish-heres-what-to-expect-202302161157
1. “BTC: AI sets Bitcoin price for Valentine’s Day 2023” Finbold – Finance in Bold, 10 Feb. 2023, https://finbold.com/btc-ai-sets-bitcoin-price-for-valentines-day-2023
2. “Crypto Market Jumps 10% with Bitcoin Approaching $25,000, BLUR Token Volume Hits $1 Billion” Coinspeaker, 16 Feb. 2023, https://www.coinspeaker.com/crypto-market-bitcoin-blur-token
3. “Bitcoin single-day price surge linked to billions in USDC inflows” Cointelegraph, 16 Feb. 2023, https://cointelegraph.com/news/bitcoin-single-day-price-surge-linked-to-billions-in-usdc-inflow
4. “Here’s Who Pushed Bitcoin (BTC) Higher by 12%: Details” U.Today, 16 Feb. 2023, https://u.today/heres-who-pushed-bitcoin-btc-higher-by-12-details
5. “Bitcoin hits highest price since August, despite regulator clampdown” TechSpot, 16 Feb. 2023, https://www.techspot.com/news/97629-bitcoin-hits-highest-price-since-august-despite-regulator.html
6. “Bitcoin Price Skyrockets to $25000, Medium-Term Dips Present Attractive Opportunities – FX Leaders” FX Leaders, 16 Feb. 2023, https://www.fxleaders.com/news/2023/02/16/bitcoin-price-skyrockets-to-25000-medium-term-dips-present-attractive-opportunities/