Bitcoin, the leading cryptocurrency, has shown a notable upsurge at the onset of February after a period of low volatility. The rising interest in spot Bitcoin ETFs has exerted upward pressure on the asset, propelling it over the $48,000 mark for the first time since these ETFs were introduced. The positive price movement has also spurred a revival among other significant cryptocurrencies.
Strong Uptrend as Bitcoin Recovers Losses
Over an eight-day streak, Bitcoin’s value soared from $42,280 to $48,050, marking an impressive 13.65% increase. This rally not only recovered half of the losses from the last downturn but also showcased the solid confidence of buyers in the cryptocurrency market.
Investors in Profit and Whales Buying More
On-chain analytics firm IntoTheBlock reported that the current surge has put 90% of Bitcoin holders in a profitable position, decreasing the chances of a mass sell-off and paving the way for sustained growth. Bitcoin is now eyeing the $49,000 resistance level, and a break above it could solidify the ongoing bullish momentum, reflecting widespread market optimism.
Furthermore, Bitcoin whales have been actively accumulating, adding 140,000 BTC, valued at approximately $6.16 billion, to their coffers within three weeks. This accumulation trend was highlighted by seasoned crypto analyst Ali Martinez as a sign of strong bullish sentiment among large-scale investors.
Indications of a Potential Bullish Reversal
A broader timeframe analysis suggests that Bitcoin may be forming a bullish ‘cup and handle’ pattern, a technical indicator that often signals a trend reversal following a significant drop. The current consolidation phase within this pattern offers an opportunity for investors to stock up on undervalued assets. A breakout beyond the $49,000 threshold could confirm this formation and potentially set a target for BTC prices around the $81,600 level.
