Bitcoin surged towards $50,000 at the opening of Wall Street on February 12, marking new two-year highs. Analysts express fresh optimism amid institutional interest.
BTC/USD Chart | Source: TradingView
Data from TradingView displayed BTC surpassing $49,800, and traders anticipate a push toward all-time highs, cautiously navigating the $50,000 mark.
Cautious Approach Amid Unification
Despite the bullish sentiment, some traders, like Keith Alan, co-founder of Material Indicators, advise caution. Alan suggests a retest of support and a confirmed R/S flip for a strong foundation. However, he warns against assuming consolidation, highlighting the potential for a squeeze if BTC breaks the Golden Pocket at $48,300.
BTC/USD chart with trading signals. Source: Keith Alan/X
Bitcoin ETF Flows Fuel Bullish Sentiment
U.S. Bitcoin exchange-traded funds (ETFs) witnessed increased attention in the past week, with over $400 million inflows on February 9. The Grayscale Bitcoin Trust (GBTC) recorded approximately 2,900 BTC outflows ($140 million) on February 12, according to Arkham data.
Today’s #Bitcoin Sent to out by $GBTC/Grayscale comes out to be ~2.9K $BTC or ~$138M worth.
Outflows from $GBTC remain relatively low.
Friday’s ETF net flows saw a massive +$541M increase. Second biggest day yet.
That makes 11 consecutive positive days of net inflows. https://t.co/xMqcq2TEHv pic.twitter.com/BZVTCQbXh7
— Daan Crypto Trades (@DaanCrypto) February 12, 2024
Trader Daan Crypto Trades notes the relatively low GBTC outflows, emphasizing 11 consecutive days of positive ETF flows. The growing hope is that ETFs will play a significant role in propelling BTC prices higher, potentially challenging all-time highs.
Analysts Weigh In
While traders remain cautiously optimistic about BTC’s rally, the ongoing institutional interest and positive ETF flows contribute to the bullish sentiment. The potential breach of the $50,000 mark is viewed with anticipation, yet caution prevails as the market navigates key resistance levels.
Bitcoin’s surge towards $50,000 is fueled by renewed institutional interest, particularly with the positive performance of U.S. Bitcoin ETFs. Analysts express cautious optimism, emphasizing the importance of retesting support levels and considering potential market scenarios. The market remains dynamic, with traders closely monitoring BTC’s movement as it approaches key resistance levels.
