- Bitcoin has surged past a critical price level.
- The asset’s recent rally appears linked to whale activity.
- Amid the rally, there is growing speculation that the Bitcoin market correction that kicked off when the SEC issued approvals for spot ETFs may end.
Amid a weeks-long correction, Bitcoin appears to be regaining its bullish momentum. Over the past 24 hours, the asset has traded at levels not seen since the approval of spot Bitcoin ETFs in early January 2024, stoking speculation of whether the market correction is at an end.
Bitcoin Breaks Above $44.5K as Whales Splash Around
Over the past 24 hours, Bitcoin has surged over 4% from lows of around $42,766 to over $44,500, breaking above this level for the first time since January 12, when it started its recent nearly 20% market correction as the euphoria of the spot Bitcoin ETF approvals cooled. At the time of writing, Bitcoin’s rally has continued, with the asset trading at $44,700.
The recent rally has been heavily linked to whales splashing on the dip. As highlighted on Wednesday, February 7, by prominent crypto analyst Ali Martinez, the number of whales holding over 1,000 BTC has increased by around 3% in the past two weeks as 73 new whales have piled in.
Crypto analytics platform Santiment Feed supported Martinez’s view. The platform highlighted that the total Bitcoin holdings of this class of investors are now at a 14-month high, signaling a solid conviction among this class of investors in Bitcoin’s upward price potential.
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The bets come as narratives like the sustained interest in recently spot Bitcoin ETFs, a potential Fed easing, and the fast-approaching Bitcoin halving continue to hold sway.
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Amid Bitcoin’s recent rally, there is growing optimism that the asset’s nearly month-long market correction may be over.
Is the Bitcoin Correction Over?
MN Trading founder Michaël van de Poppe is among analysts who have suggested that the market correction that kicked off following the approval of spot Bitcoin ETFs has ended with the recent rally. Arguing that this might be the beginning of a pre-halving rally, the analyst contended that Bitcoin could make a play for $48,000 and $51,000 in the short term.
Like van de Poppe, prominent technical analyst “Duo Nine” has asserted that the “bulls are back.” The analyst set price targets of $45,000 to $48,000, citing the completion of an inverted head and shoulders chart pattern.
Investors, however, should probably keep an eye on the $41,800 to $43,080 price range. Sharing IntoTheBlock data, Ali Martinez noted that this price range will likely be a critical support as 3 million addresses purchased 1.5 million coins within this range.
On the Flipside
- Despite the mixed price action, Bitcoin is still up over 5% year-to-date (YTD) from an opening price below $42,300.
Why This Matters
The broader crypto market tends to move in tandem with Bitcoin’s price. The end of the asset’s price correction could also suggest the beginning of bullish momentum for the broader market.
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