n the upcoming days, East Asia will rejoice in welcoming the Year of the Dragon, a symbol associated with great fortune and prosperity in the Chinese Zodiac.
Bitcoin ($BTC) surged past $46,000 on Friday morning, coinciding with East Asia’s festivities marking the beginning of what’s deemed a highly auspicious period according to the Chinese Zodiac. The cryptocurrency market’s largest player reached a peak not seen in a month, riding on the wave of celebrations.
The Mandarin Chinese word for “dragon” shares a similar pronunciation with “long,” enhancing its symbolic significance among crypto enthusiasts. With historical trends indicating potential gains during the Chinese New Year, analysts at 10X Research predict Bitcoin could climb as high as $48,000 in the days ahead, marking an estimated increase of 11%.
Over the past fortnight, Bitcoin has surged nearly 15%, bouncing back from recent losses following the much-anticipated launch of bitcoin exchange-traded funds (ETFs), which ended up being a sell-off event. Its ascent to the highest levels since January 12 coincided with record highs for the S&P500 and Nasdaq-100 indices on Thursday.
Despite concerns over potential sell-offs, ETFs have absorbed significant bitcoin selling pressure, indicating sustained demand. Furthermore, CryptoQuant, an on-chain analysis firm, noted a slowdown in bitcoin outflows from miner wallets, typically signaling selling activity.
Traders have also observed recent bitcoin price movements with optimism, interpreting the cryptocurrency’s rise above its 50-day moving average as confirmation of a bullish medium-term trend. This, coupled with a broader market uptrend, suggests the possibility of new highs on the horizon.
