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Bitcoin Hits $52,000-Plus, Explodes Over 21% For 2024 – Details

Bitcoin bulls are back in charge, with the world’s leading cryptocurrency surging past $52,000 on Wednesday following a long hiatus.

This rally comes on the heels of a brief dip below $50,000 triggered by hotter-than-expected US inflation data, but investors shrugged it off, demonstrating resilient confidence in the digital asset’s future. Bitcoin is up more than 21% so far this year.

Bitcoin Shows Mettle With $52K Breach

This latest surge marks a significant milestone, not just for Bitcoin but for the entire cryptocurrency ecosystem. After 26 months, the top crypto asset has officially surpassed the coveted $1 trillion market cap, a testament to its growing adoption and mainstream appeal.

But what’s driving this renewed optimism? Several factors seem to be fueling the flames. Firstly, there’s the bullish sentiment surrounding Bitcoin, with many analysts and traders anticipating further price gains. Options traders are particularly optimistic, placing bets that one BTC could reach $75,000 in the coming months, adding fuel to the fire.

Secondly, the recent launch of spot exchange-traded funds (ETFs) in the US has played a significant role. These ETFs allow investors to gain exposure to Bitcoin without directly holding it, attracting institutional investors and driving significant inflows.

Nearly $10 Billion Flows Into The Crypto Market

Data from CryptoQuant reveals that a staggering $9.5 billion has poured into the Bitcoin market through these ETFs since their debut in January. In fact, over 70% of new money invested in Bitcoin in the past two weeks has originated from these spot ETFs, highlighting their growing impact.

Looking ahead, the upcoming halving event in April looms large. This programmed halving, occurring every four years, reduces the amount of new Bitcoin entering circulation, potentially impacting its price due to increased scarcity. Historically, Bitcoin has witnessed significant rallies following halving events, and many analysts believe this time will be no different.

“The upcoming halving will further tighten supply,” noted Duncan Ash, head of product go-to-market strategy at Coincover. “If history repeats itself, we can expect continued growth in BTC price in the months ahead.”

However, not everyone is singing an entirely bullish tune. While analysts at Swissblock agree that the uptrend is likely to continue, they caution against overexuberance, warning of potential slowing momentum and the inherent volatility of the market.

Ultimately, the future of Bitcoin remains uncertain, as with any cryptocurrency. However, this recent surge, driven by bullish sentiment, ETF inflows, and the upcoming halving, suggests that the bulls are firmly in control for now.

Featured image from Pexels, chart from TradingView

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Bitcoin Price Alert: X Account’s Analysis Suggests Sub-$10K Drop – Here’s The Reasoning

Amid a significant Bitcoin price rally, reaching a new two-year high of $52,000, a renowned social media account known as WhaleWire has made a startling prediction.

The account, widely followed for its bold statements and news postings, has forecasted a staggering 99.99% chance of Bitcoin falling below $10,000, directly challenging the prevailing bullish sentiment.

 Clash Over Potential Bitcoin Price Crash

In a recent post on X (formerly Twitter), WhaleWire has voiced concerns about sustainability and alleged manipulation through fraud and price manipulation. The account accuses mainstream media and self-proclaimed Bitcoin enthusiasts, often referred to as “moon boy scammers,” of perpetuating an upward price narrative to allegedly serve their interests.

However, not everyone is convinced by WhaleWire’s claims. In response to the account’s recent prediction, a user on social media accused WhaleWire of being a liar, citing a previous forecast from August 2022 when the account asserted that Bitcoin would undoubtedly drop below $20,000. 

Ironically, Bitcoin did experience a decline below that threshold a few weeks later, lending some credibility to WhaleWire’s track record.

WhaleWire continues to express skepticism and calls out the so-called “Bitcoin maximalists” who exhibit excessive greed and euphoria. The account suggests that recent price movements, including Bitcoin briefly touching $50,000 amid concerns over Tether’s money printing, are deliberate maneuvers to trap bullish investors. 

WhaleWire claims that retail investors are now heavily invested in Bitcoin, anticipating further gains, only to be blindsided by a subsequent price rug-pull.

Doubling down on its conviction, WhaleWire has announced that it has increased its short positions, surpassing its $69,000 short. He believes that the ongoing rally will mark the top of what he refers to as the “echo bubble run”, which he originally predicted when Bitcoin was valued at $16,000.

Bullish Optimism Builds 

As the Bitcoin price continues its uptrend, a crypto analyst operating under the pseudonym “Mags” has taken to social media to share an optimistic outlook for Bitcoin. 

As per Mags’ analysis, Bitcoin is currently trading above the critical 0.618 Fibonacci retracement level on a weekly chart, a feat never achieved in previous cycles before the halving event.

Traditionally, the 0.618 level has proven to be a formidable resistance zone, acting as a significant hurdle on Bitcoin’s path to reaching its all-time high (ATH). Mags believes that if Bitcoin successfully closes above the 0.618 level, which is currently valued at $48,500, it could signify an unprecedented bullish breakthrough.

Adding further weight to the bullish sentiment is the analysis provided by Ali Martinez. Martinez highlights a noteworthy trend: the amount of Bitcoin held in known cryptocurrency exchange wallets has plummeted to its lowest level in six years, with a total of only 2.34 million BTC remaining.

Bitcoin price

This substantial decrease in Bitcoin holdings on exchanges suggests a growing inclination among investors to move their BTC into secure, long-term storage solutions. 

According to Martinez, this shift away from exchanges implies a potential shift towards a more “hodling-centric” approach, where investors aim to hold their Bitcoin for extended periods rather than actively trading it.

Amidst the divergence of opinions and conflicting perspectives from both bullish and bearish investors, the ultimate outcome remains uncertain. The Bitcoin price action, as the largest cryptocurrency in the market, continues its notable uptrend, challenging the bearish predictions put forth by WhaleWire and others.

As the debate rages on, time will reveal whether WhaleWire’s forecast proves accurate or if the current bullish momentum will persist, further solidifying Bitcoin’s position as a dominant force in the cryptocurrency market.

Bitcoin price

Currently, BTC is trading at $51,600, up 5.4% in the last 24 hours and over 18% in the last seven days.

Featured image from Shutterstock, chart from TradingView.com

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Will Bitcoin Bulls Be Able to Hit $55K Barrier This Week?

Bitcoin price extended its increase above the $52,000 resistance. BTC is consolidating gains and might aim for more upsides toward the $55,000 resistance.

  • Bitcoin price remained in a bullish zone above the $51,000 and $51,200 levels.
  • The price is trading above $51,200 and the 100 hourly Simple moving average.
  • There are two bullish trend lines forming with support at $51,450 and $49,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could continue to move up if it clears the $52,500 resistance zone.

Bitcoin Price Extends Rally

Bitcoin price started a steady increase above the $50,000 resistance zone. BTC gained strength above the $50,500 and $51,200 levels. It even spiked above the $52,000 resistance zone.

A new multi-week high was formed near $52,493 and the price is now consolidating gains. It is holding gains above the 23.6% Fib retracement level of the recent wave from the $48,240 swing low to the $52,493 high. There are also two bullish trend lines forming with support at $51,450 and $49,200 on the hourly chart of the BTC/USD pair.

Bitcoin is now trading above $51,200 and the 100 hourly Simple moving average. Immediate resistance is near the $52,500 level. The next key resistance could be $53,200, above which the price could extend its rally.

Bitcoin Price

Source: BTCUSD on TradingView.com

The next stop for the bulls may perhaps be $54,400. A clear move above the $54,400 resistance could send the price toward the $55,000 resistance. The next resistance could be near the $56,500 level.

Downside Correction In BTC?

If Bitcoin fails to rise above the $52,500 resistance zone, it could start another downside correction in the near term. Immediate support on the downside is near the $51,500 level and the first trend line.

The first major support is $50,500 and the 50% Fib retracement level of the recent wave from the $48,240 swing low to the $52,493 high. If there is a close below $50,500, the price could gain bearish momentum. In the stated case, the price could dive toward the $49,200 support and the second trend line.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $51,500, followed by $50,500.

Major Resistance Levels – $52,500, $53,200, and $54,400.

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Bitcoin Open Interest Surges To A 2-Year High, BTC Breaks Above $51,000

Bitcoin’s open interest has surged past $11 billion for the first time in over two years. This uptick comes when the world’s most valuable coin surges, recently easing past $51,000, the highest level since December 2021. 

Bitcoin open interest | Source: Kaiko on X

Surging Open Interest And Order Book Imbalance

According to Kaiko, a leading crypto analytics provider, this upswing in open interest comes at a critical time for the coin. When prices zoomed past $48,000 on February 11, there was an order book imbalance. Then, Kaiko observed there were $100 million more bids than asks. 

BTC ask-bid imbalance | Source: Kaiko on X

Technically, whenever there is an order book imbalance with more bids than asks, it suggests that buyers are more willing and enthusiastic to purchase at spot rates than sellers are willing to liquidate. Following this imbalance, prices shot higher the following days, breaking above the $50,000 psychological number to over $51,500 when writing on February 14. 

Surging open interest, especially as the market trends higher, is bullish. It means that more people are willing to participate in the market, hopeful of riding the trend. Subsequently, their participation translates to a more liquid market, charging the upside momentum.

Bitcoin is racing higher at the back of strong inflows into spot Bitcoin exchange-traded funds (ETFs). Over the past few weeks, spot Bitcoin ETF issuers have been rapidly accumulating the coin. The largest so far is BlackRock’s IBIT, owning over 70,000 BTC.

As a result, prices are edging higher, reflecting the high demand pinned directly to institutional participation. This positive sentiment and expectations of even more price gains, translating to higher open interest, is despite the continued liquidation of the Grayscale Bitcoin Trust (GBTC). Following court approval, GBTC is converted into an ETF, joining others like Fidelity, who also offer a similar product.

Genesis Looking To Sell GBTC; Will Bitcoin Rally In March?

Even with the high optimism, a potential cloud hangs over the Bitcoin market. Genesis, a crypto lender under bankruptcy protection, wants the court to allow them to sell over $1.4 billion of GBTC.

If the court green-lights this move, BTC could have more liquidation pressure, possibly unwinding recent gains. So far, the FTX estate sold their GBTC, estimated to be worth over $1 billion, coinciding with Bitcoin dropping to as low as $39,500 in January.

Bitcoin price trending upward on the daily chart | Source: BTCUSDT on Binance, TradingView

Besides these Bitcoin-specific events, the market is closely watching how the monetary policy scene in the United States will evolve in the next few weeks. The United States Federal Reserve is expected to slash rates in March, a potentially beneficial move for BTC.

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Robinhood Cash Surge: Sees $4 Billion Monthly Inflow From Users

Robinhood, a significant player in the United States financial technology sector, has recorded major growth. The platform has seen a notable rise in monthly user inflow.

Robinhood Monthly Deposits Surges To New Height

A correspondent at CNBC, Kate Rooney, recently shared the development with the crypto community on the X (formerly Twitter) platform. The CNBC reporter said Robinhood recorded increased profits in its most recent quarterly results.

Rooney pointed out that the platform is making some headway in its attempt to overtake established “brokerage companies” for market dominance. Additionally, Robinhood aims to expand beyond its “original base of inexperienced and younger traders” in the crypto market.

She further highlighted that over $100 billion of the firm’s assets are currently “under custody.” In addition, a “net positive transfer from every major brokerage competitor” drove the Q4 deposits to approximately $4.6 billion.

Consequently, this suggests its increasing popularity among investors looking to include digital assets in their portfolios for diversification. It also indicates the growing confidence and inclination toward the trading firm among crypto investors. 

Robinhood

The CNBC correspondent asserted that the numbers above consist of an “average customer transfer balance” of $100,000.

As per Rooney’s X post, Robinhood saw a substantial rise in monthly deposits valued at $4 billion in January. So far, the recent uptick signifies the online trading platform’s strongest month since early 2021.

During the same quarter last year, the trading platform lost $166 million, or $0.19 per share. However, this year, it made a profit of $30 million, or $0.3 per share.

As was revealed, Robinhood’s income rose due to increased net interest and transaction-based and other revenue streams. Over the three months, its net interest income grew by 4% to $236 million.

Taking Over The Active Trader Market

Vlad Tenev, Robinhood’s Chief Executive Officer (CEO), has revealed Robinhood’s intentions to take over the active trader market. Tenev recently disclosed this objective during a quarterly earnings call.

He stated that the firm’s user base and revenue have grown “nearly seven times” in the past four years. “looking at what is in front of us, we are excited by the opportunity to continue growing significantly from here,” he added.

Robinhood has gained market share and attracted net asset inflows from its major rivals. According to Tenev, the company will continuously invest in its “user experience on mobile” to achieve its goal.

Currently, the crypto enterprise stands out as the dominant player in market share. Tenev has confirmed the addition of futures and index options to the platform in the coming months of this year.

Bitcoin

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These Developments Show That The Bitcoin Bullish Momentum Is Far From Over

Crypto analyst Ali Martinez has provided insights suggesting that the Bitcoin bullish momentum is just starting. Based on this, the flagship crypto token is still likely to keep hitting new highs before the peak of the imminent bull run. 

Market Sentiment Suggests More Gains Ahead For Bitcoin

In an X (formerly Twitter) post, Martinez revealed how long-term BTC holders go through a “cycle of emotions” during a bullish period. These investors usually start with capitulation before “progressing through hope, optimism, and belief.” This capitulation phase is when these BTC bulls succumb to the bears, with the Bitcoin bottom coming at some point.  

The crypto analyst also noted that these BTC holders experience “a brief period of anxiety” even after the belief phase, which leads to a price correction. However, the market again re-enters a phase of belief after then, which signals potential further gains ahead, Martinez added. 

The crypto analyst claims the market has “just merged from a period of anxiety and has re-entered a new phase of belief.” He further stated that this suggests the market will likely witness more momentum for Bitcoin before reaching the “peak of euphoria that characterizes the end of the bullish cycle.”

Going by Martinez’s analysis, there are still new highs for BTC. There is also every likelihood that Bitcoin will surpass its all-time high (ATH) of $68,000. The crypto token has consistently surpassed its previous ATH in every bull run. Interestingly, this always happens months after the Bitcoin Halving takes place. 

That is why it is no surprise that the BTC Halving is again predicted to be the event that will fully kickstart the next bull run. 

BTC Expected To See Influx Of New Investors

In a subsequent X post, Ali Martinez highlighted how Bitcoin is far from obtaining peak popularity among the general populace. This is based on a Google Search Trends metric, which shows how popular a term like ‘Bitcoin’ is. Currently, BTC is said to have a score of 18, meaning that it hasn’t even reached “mid-popularity.”

The silver lining in this data is that it shows how much more investors Bitcoin could see in the next bull run. Moreover, introducing the Spot Bitcoin ETFs is believed to be perfect timing as these funds could contribute to onboarding the next generation of Bitcoin holders into the crypto space. 

A search engine like Google could also have a role to play when these investors become interested in the flagship crypto token. Thankfully, the platform has already blessed the advertisement of crypto-related funds, meaning it will be easy for these users to invest when the time comes.  

At the time of writing, BTC trades at around $51,400, up over 2% in the last 24 hours, according to data from CoinMarketCap. 

bitcoin btc btcusdt ark ceo spot etf sec gary gensler

Cover image from Dall-E, Chart from Tradingview

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Bitcoin Price Breaks Past $51,500: 4 Key Reasons

On Tuesday, the Bitcoin price plunged from $49,900 to $48,300 following the release of the US inflation data. As NewsBTC reported, the data came in hotter than expected. Instead of 2.9%, headline CPI came in at 3.1%, while the core CPI was even at 3.9% instead of the expected 3.7%.

The traditional financial market reacted negatively and dragged Bitcoin down with it, as expectations for interest rate cuts have shifted further into the future. The prediction markets are now pricing in only 4 rate cuts in 2024 after CPI inflation reached 3.1% in January.

This is a huge drop in expectations as just over a month ago the markets were still pricing in 6 rate cuts. The Fed’s most recent forecast was for 3 rate cuts in 2024. The probability of a rate cut in March is below 10% and the probability of a rate cut in May is falling rapidly.

In contrast to the S&P 500, however, the Bitcoin price showed a strong reaction and quickly rose again to $49,900. The reaction of the Bitcoin market is quite telling for the short-term future. And the Bitcoin price is showing just that today. At press time, BTC rose above $51,500, marking a new yearly high. Here are 4 key reasons:

#1 Record-Breaking Bitcoin ETF Inflows

The surge in Bitcoin ETF inflows marks a pivotal moment for Bitcoin, reflecting a significant shift in investor sentiment and market dynamics. On a record-breaking day on Tuesday, the net inflows into spot Bitcoin ETFs reached $631 million, led by The Nine with an inflow of $704 million, signaling a substantial accumulation of Bitcoin.

Bitcoin ETF inflows

Key players like Blackrock and Fidelity played a significant role in this influx, with Blackrock experiencing nearly half a billion dollars ($493 million) in inflows and Fidelity $164 million. The overall net inflow of $2.07 billion over four trading days, averaging over half a billion per day, highlights the staggering sustained demand for Bitcoin.

This demand is notably new capital, as GBTC outflows remained stable at $73 million, indicating these inflows are not merely a rotation from GBTC but represent fresh investments. Matt Hougan, CIO of Bitwise emphasized the significance of this movement:

IMHO the [numbers] undercounts the fundamental new investor demand for these ETFs. People assume all of the money flowing out of GBTC to date is rotating into other bitcoin ETFs. But a good chunk of it is from inorganic holders […] Long-term investors have backfilled that and added $3b more on top. I suspect the real new investor-led new demand is north of $5b, and shows no signs of slowing.

#2 Genesis GBTC Liquidation Concerns Alleviated

Fears of a Bitcoin crash, similar to FTX’s sale of GBTC, triggered by Genesis’ planned liquidation of Grayscale Bitcoin Trust (GBTC) shares have been alleviated, as reported today on Bitcoinist. The liquidation, necessary due to Genesis’ bankruptcy, was initially viewed as a potential market downturn catalyst.

The bankrupt lender needs to liquidate approximately 36 million shares of GBTC, valued at around $1.5 billion, as part of its strategy to resolve financial challenges stemming from significant loans and regulatory settlements.

However, the proposed Chapter 11 settlement involves in-kind repayments to creditors, reducing direct selling pressure on Bitcoin. This strategy aligns with the interests of long-term Bitcoin holders, potentially limiting market volatility. Greg Schvey, CEO at Axoni, highlighted:

The proposed Ch 11 settlement requires Genesis to repay creditors in kind (i.e. bitcoin lenders receive bitcoin in return, rather than USD). […] Notably, in-kind distribution was a priority negotiation topic to prevent long-term BTC holders from recognizing gains when receiving USD back (i.e. a forced sale). This would seem to indicate a substantial volume of lenders don’t plan to sell immediately.

#3 OTC Demand Exceeds Supply

The statement by CryptoQuant CEO Ki Young Ju that “Bitcoin demand exceeds supply at OTC desks currently” is a significant indicator of underlying market strength. OTC transactions, preferred by large institutional investors for their discretion and minimal market impact, are reflecting a robust demand for Bitcoin. This demand-supply imbalance at OTC desks suggests that large players are accumulating Bitcoin, a bullish signal for the cryptocurrency’s price outlook.

Bitcoin OTC flows

#4 Futures And Spot Market Dynamics

The analysis of futures and spot market indicators by @CredibleCrypto sheds light on the technical factors signaling a bullish continuation for Bitcoin. The analyst points out, “Data supporting the idea that that was ‘the dip’. – OI reset back to levels before the last pump – Funding decreasing through this local consolidation – Spot premium is back.”

Bitcoin analysis

These observations suggested a healthy market correction rather than the start of a bearish trend, with the reset in open interest and the decrease in funding rates indicating that the market has absorbed the shock and is primed for upward movement.

In conclusion, The combination of record ETF inflows, alleviated concerns over Genesis’ GBTC liquidation, strong OTC demand, and favorable futures and spot market dynamics provides a compelling case for Bitcoin’s potential rally. Each of these factors, supported by expert insights and market data, underscores a growing investor confidence.

Bitcoin price

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Are We Headed For Another $69K? Bitcoin Price Surges As Greed Dominates Crypto Market

Bitcoin, the undisputed king of cryptocurrencies, is making headlines again with a recent price surge that has pushed it past the coveted $50,000 mark. This rally, coupled with an “extreme greed” reading on the Crypto Fear and Greed Index, paints a picture of a market brimming with optimism, but also raises concerns about potential overheating.

Greed Galore: Index Hits Highest Since ATH

The Crypto Fear and Greed Index, a widely used indicator of investor sentiment, recently skyrocketed to 79, its highest level since November 2021, when Bitcoin peaked at a record-breaking $69,000. This “extreme greed” reading suggests that investors are feeling euphoric about the current rally, potentially leading to risky investment decisions.

Bitcoin’s Bullish Charge: 15% Gain YTD

Fueling this optimism is Bitcoin’s impressive performance year-to-date. Since January 1st, the cryptocurrency has climbed a staggering 15%, showcasing a sustained bullish trend. This surge comes on the heels of a volatile 2023, where Bitcoin saw both dramatic dips and exciting climbs.

Spot Bitcoin ETFs: A Catalyst For Growth?

Many analysts point to the recent launch of spot Bitcoin exchange-traded funds (ETFs) in the US as a key driver of the current rally. These ETFs offer investors a regulated way to access Bitcoin, potentially attracting new money to the market. While the initial launch saw a sell-off, analysts like Cathie Wood of ARK Invest believe it was short-lived, paving the way for long-term institutional participation.

Doubled Value In A Year: A Turning Point?

Bitcoin’s current price of $50,000 is more than double what it was a year ago. This significant growth, coupled with the influx of new investors, leads some to believe that Bitcoin is entering a new era of stability and sustained growth. However, the cryptocurrency market is notoriously volatile, and past performance is not always indicative of future results.

Proceed With Caution: Experts Advise

Financial experts urge investors to exercise caution despite the current market enthusiasm. The “extreme greed” reading on the Fear and Greed Index serves as a warning sign of potential irrational exuberance. Investors should always conduct their own research, understand their risk tolerance, and not blindly follow market trends.

Bitcoin’s future remains uncertain, but one thing is clear: the crypto market is once again buzzing with excitement. Whether this translates into another $69,000 peak or a sudden correction remains to be seen. Only time will tell if the current “greed” translates into long-term prosperity or a fleeting blip on the radar.

Featured image from Adobe Stock, chart from TradingView

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Stacks (STX) Skyrockets Over 43% And Smashes $2 Threshold, Setting Sights On New All-Time Highs

Stacks (STX) has garnered significant attention in the cryptocurrency industry as it emerges as a leading altcoin contender. With an impressive performance surpassing all top 100 tokens, except for Dymension (DYM), Stacks has witnessed a remarkable surge in the past 24 hours, catapulting its value well above the $2 mark and inching closer to its all-time high (ATH) of $2.492. 

This surge can be attributed to various factors, including its positioning as a Bitcoin layer for smart contracts, the recent surge in Bitcoin’s price, and the token’s adoption and growth rate.

Stacks Climbs The Market Cap Rankings

As outlined in the project’s white paper, Stacks serves as a Bitcoin layer for smart contracts, enabling trustless utilization of Bitcoin as an asset in smart contracts and facilitating transaction settlements on the Bitcoin blockchain. 

The recent surge in Bitcoin’s price over the past few weeks has also acted as a catalyst for Stacks’ price surge. Currently trading at $2,156, Stacks has experienced a significant recovery from its low of $1,241 during a market downturn that bottomed on January 23. 

Notably, this recovery coincided with Bitcoin’s price rebound from $38,500 to $43,000, highlighting the correlation between the two assets.

Market expert Trover.btc, known on X (formerly Twitter), has noted Stacks’ impressive ascent in the market cap rankings. From being ranked around 60, Stacks has climbed to the 34th position within a year, surpassing well-known projects. 

With the Bitcoin Layer 2 narrative gaining prominence and Layer 1 network fees reaching all-time highs, expectations are high for Stacks to enter the top 20 rankings around the halving, according to Trevor.btc. 

STX Sets All-Time High Total Value Locked 

A key metric to consider is its market capitalization (fully diluted) to gauge Stacks’ adoption and growth rate. According to Token Terminal data, Stacks’ market cap has experienced a notable surge of 187% in the past 90 days and an impressive increase of over 527% year-to-date, aligning with the token’s price surge.

Stacks

Moreover, data from on-chain analytics aggregator DefiLlama reveals that Stacks’ total value locked (TVL) has reached an all-time high of $70.41 million. 

This represents a significant increase of over 400% in just four months, highlighting the growing confidence and demand for Stacks within the decentralized finance (DeFi) ecosystem.

As the demand and interest in the protocol and its native token continue to grow, whether Stacks will surpass its previous all-time high or experience a correction remains to be seen. 

The notable correlation between STX and BTC suggests that Bitcoin’s retracement from its current two-year high could also impact the price of STX.

Stacks

However, the token has significant interest, as reflected in the highlighted metrics above. With the anticipated bull run gaining momentum leading up to the Bitcoin halving event, STX has the potential to reach even higher levels and climb the crypto rankings within the industry.

Observing how the STX price reacts in the coming days and weeks will be interesting. While uncertainties exist, the token’s current high level of interest suggests a positive outlook for its future performance.

Featured image from Shutterstock, chart from TradingView.com 

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Inflationary Concerns Rise As US CPI Exceeds Predictions, Bitcoin Price Reacts

The latest US inflation data significantly impacted the Bitcoin price and most of the cryptocurrency market, with some exceptions. According to a report from the Labor Department, inflation rose more than expected in January, driven by higher shelter prices.

Furthermore, the consumer price index (CPI), which measures the prices consumers face for goods and services across the economy, saw a 0.3% increase for the month. On a 12-month basis, the CPI stood at 3.1%, slightly lower than December’s 3.4%.

Bitcoin Price Retreats Amid Higher-Than-Expected CPI Figures

According to recent reports, the higher-than-expected CPI figures could pose challenges for the Federal Reserve (Fed), as officials anticipate inflation to recede and reach their 2% annual target. The central bank aims to adjust monetary policy, which has been tight over two decades. 

However, the January increase in inflation may delay the Fed’s plans to ease rates, as it will require more data before initiating a rate-cutting cycle. This outcome disappointed those who expected inflation to decrease and prompted a reassessment of the timing for potential rate adjustments.

On this matter, market intelligence platform Santiment reported that the 3.1% CPI result caused market cap losses in cryptocurrency and equities markets. The Bitcoin price, which had breached the $50,000 mark for the first time in over two years, has fallen below $49,000 in response. 

According to the crypto platform’s analysis, this mild retrace will likely polarize crowd sentiment, potentially leading to significant panic sales. In such a scenario, the justification for dip buying becomes more viable, but sentiment may turn negative. 

Bitcoin’s Market Cycle Patterns

Market expert Crypto Con has identified a striking pattern in Bitcoin’s market cycles, specifically concerning the 20 Week Exponential Moving Average (EMA). Despite mounting concerns regarding inflation data, the analysis suggests that the Bitcoin price behavior tends to follow a consistent six-step pattern, with significant implications for support and potential correction levels.

According to Crypto Con’s analysis, Bitcoin’s price movement in each market cycle has adhered to a similar pattern involving the 20-week EMA. The pattern unfolds as follows: 

First, as seen in the chart below, the Bitcoin price breaks above the moving average, marking the beginning of a new cycle and a notable uptrend. However, after the completion of the initial run, the price retraces and falls below the moving average, signaling a temporary shift in sentiment.

Despite the temporary setback, Bitcoin’s price then breaks above the moving average once more, indicating the start of a true rally and resumption of the upward trend. At this stage, price action creates a false retest of support, narrowly missing the moving average as a crucial support level. This false retest is a common occurrence in Bitcoin’s market cycles.

Bitcoin price

Following the false retest, Bitcoin embarks on a second run, representing a further advancement in the market cycle. Bitcoin’s price is currently positioned during this phase. 

According to the analysis made by Crypto Con, the full correction in Bitcoin’s price may not need to be as deep, as the moving average currently sits at approximately $40,000. 

Ultimately, the analysis’s suggestion that the Bitcoin price may not dip below the $40,000 level during the ongoing bull run, even in the face of anticipated corrections, is particularly encouraging for bullish investors. 

Bitcoin price

Bitcoin is trading at 48,600, down 3% in the last 24 hours.

Featured image from Shutterstock, chart from TradingView.com