Bullish Run for Bitcoin and Altcoins Amid Skyrocketing ETF Inflows and S&P 500 Success
Summary:
This article provides a detailed analysis of the recent performance of high-risk assets, particularly Bitcoin and select altcoins. Bitcoin's gains have boosted investor sentiment, while the S&P 500 Index has seen consecutive weekly gains. BitMEX Research data reveals sizable inflows into Bitcoin Exchange-Traded Funds, while altcoins are also making significant strides. However, experts warn of likely resistance in the growth trajectory. The piece also includes a comprehensive examination of the performance of the BTC/USDT, IMX/USDT, KAS/USDT, TIA/USDT, and STX/USDT pairs.
High-risk assets have garnered significant momentum lately. Both the S&P 500 Index, which has recorded gains consecutively for five weeks and Bitcoin, showing a more than 13% increase this week, showcase bullish purchasing behavior. As per BitMEX Research data, there were inflows of $2.7 billion into nine Bitcoin exchange-traded funds (ETFs) on February 9, while the Grayscale Bitcoin Trust (GBTC) saw decreased outflows, amounting to $51.8 million. This raised the total assets under the management of these ETFs to a whopping $10 billion.
Even as bullish sentiment gets a boost from Bitcoin's surge, Keith Alan, Material Indicators' CEO and co-founder, warned in a post on X (formerly Twitter) of a stiff resistance Bitcoin is likely to encounter somewhere between its current stage and $50,000.
In the spotlight of Bitcoin's gains, select altcoins have been quietly pushing ahead. Here's a peek at the performance graph of the top five cryptocurrencies showing potential of outpacing others in the near future.
The impressive rally of Bitcoin is facing headwinds from the significant overhead resistance at $48,970. Bulls and bears are likely to clash hard around this mark. BTC/USDT pair could sprint towards $52,000 if bulls take the price above $48,970 and if this mark is surpassed, the rally could reach as far as $60,000. The path will be littered with diversions if prices take a sharp downturn at this point, signaling potential consolidation between $44,700 and $48,970 over the course of several days. The short-term trend will look weak if it breaks below the 20-day EMA.
The sharp upward move of the RSI into overbought territory on the 4-hour chart suggests an imminent correction. This may happen in the near-term. If bears can push the price below the 20-EMA, this could be the start of a more significant pullback to the 50-simple moving average. Conversely, if the price ricochets off the 20-EMA, it shows strong buying on the dips. The pair could then break through $48,970 and race towards the next big resistance at $52,000.
For the IMX/USDT pair, the IMX broke past the $2.60 resistance on February 10, showing a resurgence of the uptrend. The bear market, though, is unlikely to yield without a fight. They will test the strength of the bulls at the $2.85 level. If prices dip and go below $2.60, it shows weakening bullish momentum. The bears may have a comeback if they can drag prices below the moving averages. If the bulls don't give the bears the upper hand, it shows their anticipation of a breakout. If the $2.85 resistance is crossed, the pair could rise to $3 and thereafter to $3.50.
Another cryptocurrency, Kaspa (KAS), saw bullish buying when psychological support of $0.10 was successfully defended during its correction phase. Momentum picked up when it breached the moving averages on February 7, taking it close to the powerful overhead resistance around $0.15. It is likely to be range-bound between $0.10 and $0.15 for some time if it breaks and closes below $0.13.
On another note, Celestia (TIA) has been trending upwards for several days but has met stiff resistance at the $20.40 level. Upward sloping moving averages and a positive territory RSI show greater buying influence. If this continues, it would increase chances of the rally going beyond $20.40. However, if the price dips below the 20-day EMA ($18.01), it will indicate that the bulls have had a hurried exit.
Finally, Stacks (STX) has seen strong demand at lower levels, moving past the $1.78 resistance after a short round of correction. The STX/USDT pair may scale the overhead resistance at $2.06 and if crossed, could see a surge to $3.
This report does not offer investment advice or guidance. All investments and trading strategies bear potential risk, hence it is essential for readers to perform their own diagnostics before deciding.
Published At
2/11/2024 11:31:48 PM
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