Bitcoin has historically seen gains around the Chinese New Year period.
Sources of selling pressure from ETF holders and miners have eased in the past week while BTC prices have increased, suggesting demand.
The largest crypto by market cap reached a one-month high as East Asia ushered in its biggest festive of the year, celebrating the start of what’s believed to be one of the luckiest periods as per the Chinese Zodiac.
In Mandarin Chinese, the word for dragon is pronounced similarly to “long,” boosting memetic value among crypto traders.
Bitcoin could rise to as much as $48,000 in the coming days as the asset historically shows gains around the Chinese New Year period, 10X Research said in a Thursday note, predicting a gain of at least 11%.
The asset has added nearly 15% in the past two weeks, data shows, easing losses as the anticipated bitcoin exchange-traded funds (ETFs) turned out to be a sell-the-news event. The rise to its highest level since Jan. 12 came as the S&P500 and Nasdaq-100 indices hit all-time highs on Thursday.
Several ETFs have since absorbed more than a billion dollars worth of bitcoin selling pressure in the past few weeks, indicating demand.
Elsewhere, on-chain analysis firm CryptoQuant said in a Thursday note that bitcoin movements out of miner wallets – which signify selling – seemed to slow.
Meanwhile, some traders said recent bitcoin price action stemmed fears of a further sell-off, citing strength in weekly movements.
“Bitcoin rose above its 50-day moving average late Wednesday, confirming the bullish medium-term trend and easing fears of a deeper correction,” said Alex Kuptsikevich, FxPro senior market analyst, in an email to CoinDesk. “On a weekly basis, bitcoin and the broader crypto market have gained strength after a long period of consolidation and are now poised to make new highs.”
Edited by Parikshit Mishra.