On February 14th, Bitcoin investors were treated to a significant price surge, with the cryptocurrency hitting its highest point in two years. The sharp increase was observed during the Asian trading session, where Bitcoin not only rebounded from a 4% dip but also soared toward the $52,000 mark.
Surge in Market Value
The remarkable ascent involved the BTC/USD currency pair climbing by $1,000 within an hour, pushing the overall cryptocurrency market value near $2 trillion. Bitcoin’s market capitalization alone surpassed $1 trillion. Skew, a renowned trader, recognized a pivotal resistance/support transition on the 4-hour chart while analyzing short-duration trends.
Skew emphasized the importance of exponential moving averages (EMAs) and the Relative Strength Index (RSI) in determining the market’s momentum. He suggested that as long as the market sustains its upward trajectory, these metrics will serve as reliable indicators of trend confirmation and momentum shifts.
Furthermore, Skew pointed out the strong demand from spot buyers, particularly noting the increase of institutional investments through US-based spot Bitcoin exchange-traded funds (ETFs), with nine providers actively acquiring more Bitcoin each day.
Anticipation Builds for Upcoming Halving
Taking a more long-term view, Rekt Capital, an influential investor, and analyst, posited that the current patterns align well with previous Bitcoin bull markets. Preceding the anticipated halving event in mid-April, he compared the ongoing price recovery to the rally that typically starts two months before such milestones, drawing parallels to the year 2020.