Bitcoin surged past $46,000 early on Friday, propelled by the onset of East Asia’s celebration of the Year of the Dragon, considered a highly auspicious time in the Chinese Zodiac.
The cryptocurrency market, as measured by the CoinDesk 20 Index (CD20), witnessed a more than 2% jump alongside Bitcoin’s rally to a one-month high. This surge coincided with East Asia’s festivities, marking the beginning of what is traditionally regarded as an auspicious period in the Chinese Zodiac.
In Mandarin Chinese, the word for “dragon” sounds similar to “long,” a linguistic connection that carries memetic significance among crypto traders.
Forecasts from 10X Research suggest that Bitcoin could potentially climb to $48,000 in the coming days, citing historical trends indicating gains during the Chinese New Year period, potentially marking an 11% increase.
Bitcoin has seen a notable uptick, recording a nearly 15% rise over the past fortnight, effectively offsetting losses experienced during the much-anticipated launch of Bitcoin exchange-traded funds (ETFs), which resulted in a “sell-the-news” reaction. This recent surge brings Bitcoin to its highest level since January 12, coinciding with record highs in the S&P500 and Nasdaq-100 indices on Thursday.
The influx of over a billion dollars into several ETFs over the past weeks signals significant demand in the market. Additionally, CryptoQuant, an on-chain analysis firm, noted a slowdown in Bitcoin movements out of miner wallets, typically indicative of selling activity.
Furthermore, traders have expressed optimism regarding recent Bitcoin price action, perceiving strength in weekly movements and citing Bitcoin’s ascent above its 50-day moving average as confirmation of a bullish medium-term trend. Alex Kuptsikevich, FxPro’s senior market analyst, highlighted this sentiment, emphasizing the market’s resilience after a prolonged consolidation period and its potential for new highs in the near future.
