Bitcoin and other cryptocurrencies have continued their rally, with digital assets approaching the peak levels reached last month. Crypto bulls are closely watching whether Bitcoin can finish the week above a key level, which could potentially pave the way for further gains.
The price of Bitcoin has surged by 6% over the past 24 hours, reaching above $47,400. This represents the highest levels since mid-January, when the excitement over the approval of spot Bitcoin exchange-traded funds (ETFs) in the U.S. propelled prices to nearly $49,000, marking their highest point since early 2022. It is worth noting that Bitcoin had remained stagnant around $40,000 for several weeks prior to the recent rally.
Analyst Alex Kuptsikevich from broker FxPro states that all eyes are now on whether Bitcoin can surpass its previous highs, from which it had retreated shortly after the initial reaction to the launch of spot ETFs. Breaking above the $49,000 level would set the stage for a potential test of all-time highs in the near future.
Bitcoin’s positive movement can be attributed not only to spot Bitcoin ETFs but also to a surge in investor sentiment for risk across wider markets. The Dow Jones Industrial Average and S&P 500 have rallied as stocks remain near record-high levels.
Analysts believe that the gains for Bitcoin significantly improve the technical market backdrop, hinting at the possibility of further advances. The focus is primarily on whether Bitcoin can close the week above a key level.
According to Daisy Leung, CEO of trading platform SynFutures, the weekly chart indicates that Bitcoin has not achieved a weekly close above $44,000 since March 2022. Although Bitcoin has surpassed this level multiple times in the past two months, it has been unable to maintain a close above it. Therefore, any close above $44,000 by the end of the week can be seen as a bullish sign.
In addition to Bitcoin, Ether—the second-largest cryptocurrency—has risen by 4% to surpass $2,500. Smaller tokens or altcoins have shown less significant movements, with Cardano climbing 3% and Polygon rising by 2%. Memecoins, such as Dogecoin and Shiba Inu, have also experienced gains, with each of them increasing by 3%.