Bitcoin price has gradually reduced the chances of market correction towards the support range between $32k and $38k before the upcoming halving.
The cryptocurrency market gained around 4 percent in the past 24 hours to a total valuation of about $2 trillion led by the notable Bitcoin (BTC) bullish breakout. According to the latest market data, Bitcoin price has gained around 4 percent in the past 24 hours to trade about $50k during the early London session on Tuesday. The sudden Bitcoin-led crypto bullish breakout resulted in the liquidation of about $200 million, with the majority consisting of short traders. As a result, the altcoin market led by Ethereum (ETH) and Solana (SOL) joined in the bullish party.
Top Reasons Bitcoin Price Gained Today
Bitcoin price has enjoyed bullish momentum since earlier last year, but the pace has accelerated since the fourth quarter of 2023. The approval of several spot Bitcoin exchange-traded funds (ETFs) in the United States earlier last month has gradually moved away from the sell-the-news event. Furthermore, Bitcoin has a finite supply of 21 million, with more than 70 percent currently held by long-term investors who have not moved them for more than a year. Additionally, the recently approved spot Bitcoin ETFs now hold more than 682k Bitcoins combined despite the notable outflows from Grayscale Bitcoin Trust (GBTC).
In the past three weeks, Bitcoin whales have accelerated the accumulation pace amid the upcoming fourth halving. According to on-chain data analysis provided by Santiment, Bitcoin whales acquired 140,000 Bitcoins worth over $6.3 billion in the last three weeks. The appetite for Bitcoin from institutional investors has accelerated significantly as shown by the weekly Counshares report. Notably, Bitcoin led in the $1.1 billion cash inflows to digital assets investment products last week.
🟢 Digital assets start the week with US$1.1bn inflows!
AuM is at its highest level since early 2022, at US$59bn.– ETFs dynamics –
📈 The momentum of inflows into new issuers is not slowing down. Newly issued US spot-based Bitcoin ETF now total US$2.8bn inflows since their… pic.twitter.com/kGqVU6jX62
— CoinShares (@CoinSharesCo) February 12, 2024
Bitcoin price will likely continue in a bullish outlook fueled by the heightened cash inflows to spot BTC ETFs in the United States. Some experts have argued that Bitcoin price will follow Gold’s price after the 2004 spot ETF approval and might not drop like during the futures ETP approval. Meanwhile, $1.5 trillion asset manager Franklin Templeton joined the spot Ethereum ETF race, which signals the heightened demand for digital assets from institutional investors.
Market Picture and Price Analysis
Bitcoin price has gradually reduced the chances of market correction towards the support range between $32k and $38k before the upcoming halving. However, veteran crypto and stock trader Peter Brandt has opined that Bitcoin price could experience a significant residence level of around $57k in the coming weeks based on a rising channel established in the past year.
All boxed in???
Coffin corner?
or
Springboard pattern?$BTC pic.twitter.com/inG3Zg452v— Peter Brandt (@PeterLBrandt) February 12, 2024
With the weekly Relative Strength Index (RSI) above the 70 level again, Bitcoin price is well positioned to rally further in the near term.
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