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Bitcoin's price broke $48,000, driven by the upcoming halving in April and substantial inflows into exchange-traded funds (ETFs). On Thursday (8/02), inflows reached $405 million. This surge in funds, the largest of the week, aligns with the current Bitcoin price rally, piquing interest and speculation among investors and enthusiasts.
On the other hand, Cathie Wood, ARK Invest CEO, has been vocal about her belief in Bitcoin’s potential to overshadow gold as the preferred safe-haven asset. Bitcoin’s performance during last year’s regional bank crisis in March, where it saw a remarkable 40% price increase, contrasts with the struggles faced by the regional bank index. Her observations align with a growing sentiment that Bitcoin is increasingly viewed as a ‘flight to quality’ asset. She believes this signals Bitcoin’s gradual move towards becoming a significant part of the investment landscape, potentially replacing gold for some investors.
After Federal Reserve Chair Powell's address on February 5, 2024, the Bitcoin (BTC) daily candlestick chart faced resistance within the $43,000 to $44,000 range while maintaining levels above the critical support level of $42,000. This resilience averted the formation of a double top pattern.
Over the subsequent two days, BTC sustained its upward trend, breaching the resistance zone on Wednesday (7/02). This breakthrough indicated a strong bullish trend, reflecting the positive market sentiment driving the cryptocurrency sphere.
Furthermore, the decrease in new claims for unemployment benefits by Americans last week, as of Thursday (8/02), surpassed expectations. Initial claims serve as a crucial economic indicator, with a decline often signaling an improving job market and broader economic expansion. This positive development led to a 2% upturn in BTC prices, reinforcing its upward trajectory in response to market dynamics.
Moreover, on Friday (9/02), spot Bitcoin exchange-traded funds (ETFs) observed the highest weekly inflow of $542 million. Analysts interpret this positive ETF flow as indicative of a growing investor interest and demand for Bitcoin. Concurrently, BTC prices surged past the $47,000 resistance level. Anticipation surrounds the upcoming Bitcoin halving in less than 70 days, which will halve the market supply of BTC from 6.25 BTC per block to 3.125 BTC. With mounting interest from institutional investors, on February 11, 2024, BTC reached $48,000.
On February 5th, 2024, the price of Ethereum failed to penetrate the resistance area in the range of $2,340 — $2,350 but did not continue the decline below its trendline, thus still forming the bullish Ascending Triangle pattern.
On the following day, February 6th, 2024, the price of Ethereum managed to penetrate its resistance area in the range of $2,340 — $2,350 with a 3% increase in one day. The ongoing price increase may be associated with the upcoming Dencun update aimed at increasing network scalability and stability.
Without waiting for long, Ethereum continued its ascent on February 7th, with a 2% increase in one day, continuing the rise towards the target price of 2,500.
Solana is presently demonstrating a bullish falling wedge pattern, hinting at a potential upsurge of about 38% to attain $120, with a support range spanning from $87 to $89.
Supported by recent network improvements geared towards enhancing throughput capacity. Concurrently, developers are actively expanding the Solana ecosystem, attracting a diverse array of projects encompassing DeFi, NFTs, Web3, and other sectors also on Thursday (8/02), the Total Value Locked (TVL) within Solana's DeFi ecosystem surpassed $1.8 billion, marking the first time since June 2022.
This material is for general information and is not investment advice, a recommendation, or solicitation to buy and sell any cryptocurrencies, digital assets, securities or derivative instruments, or to make any investments. Mobee is under no obligation to update this report based on information and events that occurred after this report was created and published. Any suggestions or recommendations in this report may not be appropriate for certain users.
