Bitcoin Surges Past $46K, Ushering in the 'Year of the Dragon'

As East Asia marks the auspicious Chinese New Year, Bitcoin rallies amidst positive market sentiment.

Bitcoin (BTC) experienced a robust surge, surpassing the $46,000 mark early on Friday, accompanied by a 2% increase in the CoinDesk 20 Index (CD20), reflecting the resilience of major cryptocurrencies.

The leading cryptocurrency, renowned for historical gains during the Chinese New Year period, achieved a one-month high. This notable ascent coincided with the commencement of East Asia's most significant festivity, heralding the "Year of the Dragon" – considered a symbol of luck and prosperity in the Chinese Zodiac.

In Mandarin Chinese, the pronunciation of "dragon" bears a resemblance to the word "long," adding memetic value and cultural significance to crypto enthusiasts.

Bitcoin's current trajectory suggests a potential rise to $48,000 in the coming days, supported by historical trends during the Chinese New Year, according to a note from 10X Research, anticipating a minimum gain of 11%.

Over the past two weeks, Bitcoin has demonstrated resilience, accumulating a nearly 15% increase, mitigating losses incurred during the sell-the-news event surrounding the much-anticipated bitcoin exchange-traded funds (ETFs). The cryptocurrency reached its highest level since January 12, coinciding with record highs for the S&P500 and Nasdaq-100 indices on Thursday.

Amidst these positive developments, various ETFs absorbed over a billion dollars in bitcoin selling pressure, indicative of sustained demand. Additionally, on-chain analysis firm CryptoQuant reported a slowdown in bitcoin outflows from miner wallets, traditionally associated with selling.

Traders and analysts alike noted that recent bitcoin price actions dispelled concerns of an imminent sell-off, emphasizing the strength evident in weekly movements. Alex Kuptsikevich, FxPro senior market analyst, highlighted, "Bitcoin rose above its 50-day moving average late Wednesday, confirming the bullish medium-term trend and easing fears of a deeper correction."

As the crypto market gains momentum, the broader sentiment suggests a potential for new highs, breaking free from a prolonged consolidation period.

(Photo Source / Blockonome)