Bitcoin’s price has surged by 6.28% in the past 24 hours, reaching a high of $48,200 on Feb. 9. Technical indicators, the rise of spot Bitcoin exchange-traded fund (ETF) shares, and on-chain data suggest that Bitcoin has the potential to surpass its previous high of $49,000 after the approval of the Bitcoin ETF.
Traders have noticed a rare buy signal from the Bitcoin SuperTrend indicator. On Feb. 8, the indicator turned bullish as it changed from red to green and dropped below $44,600. This indicator analyzes BTC’s trend by incorporating the average true range in its calculations, aiding traders in identifying market trends.
Looking at the monthly chart, previous confirmations from this indicator have resulted in significant rallies for Bitcoin. In 2013, 2017, and 2021, Bitcoin experienced rallies of 1,336%, 1,9384%, and 713% respectively after the indicator’s signal.
As long as the SuperTrend indicator remains green and below the price, it suggests that the price momentum favors traders with a bullish outlook.
Furthermore, spot Bitcoin ETF shares have been performing well. On Feb. 9, as the price of Bitcoin climbed above $47,000, Bitcoin ETF shares saw an average gain of 4%. The Global X Blockchain & Bitcoin Strategy ETF experienced the highest increase, rising by 6.6% in the past 24 hours.
In terms of inflows, BlackRock’s iShares Bitcoin Trust leads with a total of $3.23 billion as of Feb. 8, according to Bloomberg data. The Fidelity Wise Origin Bitcoin Fund follows closely with $2.8 billion in inflows. The Bitwise Bitcoin ETF and ARK 21Shares Bitcoin ETF rank third and fourth with $696 million and $695 million in total inflows respectively.
It’s worth noting that the total inflows for BTC ETFs have exceeded the net outflows from the Grayscale Bitcoin Trust for nine consecutive days.
This increase in the price of Bitcoin ETF shares and positive netflow aligns with expectations of a bull run in the Bitcoin market.
Data from IntoTheBlock reveals that Bitcoin has found support in the $42,500 demand zone. The IOMAP model shows that approximately 1.01 million BTC was previously bought by around 2.61 million addresses in the $41,526-$42,942 price range.
On the BTC/USD daily chart, the 50-day exponential moving average coincides with this support level, acting as a strong line of defense for the bulls. The relative strength index shows an upward trajectory, with a price strength of 71 supporting the dominance of buyers in the market.
In the short term, traders are setting their Bitcoin price targets in the $48,000-$50,000 range.
Factors that could drive Bitcoin’s upward momentum in 2024 include the increasing participation of institutional investors and the anticipated halving event in April.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment or trading decisions.