Bitcoin Challenges January Highs as S&P 500 Marks Historic Surge
Summary:
In a show of strength on February 9, Bitcoin fought off overhead resistance, lining up with January highs. Displaying a 2% rise since the day's closure, the cryptocurrency mirrored a historic surge in U.S. stocks, with the S&P 500 reaching 5,000 points. Trading firm QCP Capital anticipates the uptrend in stocks and crypto to persist, encouraging BTC as well as ETH. Meanwhile, Material Indicators' Keith Alan emphasized avoiding dips below the 50-day simple moving average, while trader Aksel Kibar noted the sustained BTC price range over 150 days and predictions surrounding the impact on April's block subsidy halving.
Bitcoin (BTC) shot towards its peak value of January on February 9, successfully challenging the resisting overhead. During the day, data from Cointelegraph Markets Pro and TradingView demonstrated an uptick of Bitcoin’s price to $46,365 on Bitstamp, which is a 2% rise since the daily closing. As a result, the BTC/USD pair witnessed a surge in sell-side liquidity, taking it back to the figures not observed ever since the initiation of the United States spot Bitcoin exchange-traded funds (ETFs). The ETFs turned into a vital factor backing the rise in Bitcoin’s price, recording consecutive net inflows for nine days, resulting in outflows from the Grayscale Bitcoin Trust (GBTC) being kept to a minimum.
The jump in Bitcoin’s value coincided with U.S. stocks' historic surge. For the first time ever, the S&P 500 touched the 5,000 points mark. Trading resource The Kobeissi Letter stated that S&P 500 has grown by about 900 points since October 27th low, leading to a nearly $8.5 TRILLION increase in market cap in a little over three months, a truly remarkable rally for stocks. According to financial services company QCP Capital, an upward trajectory in the world of crypto and stocks is likely to persist. The company predicted that any downturn in stocks would be offset by underinvested investors chasing returns, positively affecting the BTC and ETH, backed by Bitcoin halving and ETH spot ETF narratives respectively.
Keith Alan, co-founder of Material Indicators, emphasized the imperative of avoiding wicks below the 50-day simple moving average that stands a little above $43,000 for the immediate future. On the other hand, popular trader Aksel Kibar highlighted that the 40K horizontal support continued to hold for BTCUSD on a weekly closing basis and that the trend channel remained undisturbed. Kibar also remarked on the ongoing Bitcoin price range for over 150 days now, with its peak achieved post-ETF in January acting as a cap. Various theories have been speculated lately, predicting how this situation might impact April’s block subsidy halving. It must be noted that this news item does not offer investment advice or recommendations and entails risk, readers are advised to do their own research before making a decision.
Published At
2/9/2024 10:39:35 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.