The price of bitcoin (BTC) has skyrocketed during the first days of the week, breaking the $50,000 mark for the first time since December 2021. Bitcoin has been battling the resistance level of around $52,000 since Wednesday, and according to Swissblock analysts, we may be preparing for a downward trend.
This will happen after the bitcoin halving, according to the asset manager
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Bitcoin news
Necessary bitcoin correction
On Wednesday, the bitcoin price rose by more than 4 percent to roughly $52,000. A day later, a short-lived peak of around $52,800 was reached, after which a decline brought the price back to below $51,000.
The price soon rose back to just below $52,000, where it has been consolidating until the time of writing.
For the time being, the resistance zone of $52,000 has managed to prevent a further increase. Swissblock analysts said in a market update last Friday, seen by CoinDeskwarned of an impending correction.
“A pullback seems inevitable and necessary given the recent rapid rise of around 33% in recent weeks, indicating an unsustainable rally,” the analysts wrote.
However, they are talking about a healthy ‘short-term dip’, which could provide investors with a nice buying opportunity. As long as bitcoin can maintain its support around $47,500, higher prices are in store according to Swissblock.
At the time of writing, the BTC price stands at $51,740, which is more than 7 percent higher than at the beginning of the week.
Recordinstroom BTC ETF’s
The main reason for bitcoin’s recent price explosion is the crushing influx of bitcoin spot exchange-traded funds (ETFs), which entered US stock markets last month.
Last week, all funds together attracted almost $2.3 billion in new capital. These net inflows exceed any other ETF on the market. It was also the most successful week since the launch on January 11. The average net inflow per day last week was about $454 million.
By far the largest share flowed to the fund of BlackRock, the world’s largest asset manager. With a net inflow of approximately $1.7 billion, BlackRock now owns more than $6.2 billion in bitcoins.
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2024-02-18 18:46:05
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