Bitcoin Surpasses $46K as 'Year of the Long' Commences, Alleviating ETF Sell-off

TL;DR
1. Crypto peaks during auspicious East Asian festival, tied to dragon symbolism.
2. Bitcoin could hit $48,000 soon, boosted by Chinese New Year trends, recent gains.
3. Bitcoin ETFs absorb $1B+ selling pressure, on-chain data hints at reduced miner selling.
4.Bitcoin's rise above 50-day moving average sparks optimism, signals bullish trajectory.

Bitcoin (BTC) surged past $46,000 early Friday, accompanied by a more than 2% increase in the CoinDesk 20 Index, which measures the performance of major cryptocurrencies.

Fortuitous Start of the Chinese New Year

The leading cryptocurrency attained a one-month peak coinciding with the onset of East Asia's grandest celebration, marking the commencement of what is traditionally deemed one of the most auspicious periods in accordance with the Chinese Zodiac.

In Mandarin Chinese, the term for dragon, a revered symbol of strength and prosperity, bears a phonetic resemblance to the word "long," imbuing it with significant cultural and memetic significance within the crypto community.

Positive Outlook for Bitcoin

Analysts at 10X Research anticipate Bitcoin's potential ascent to $48,000 in the forthcoming days, citing historical trends that indicate favorable performance during the Chinese New Year festivities, projecting a minimum gain of 11%.

Bitcoin has witnessed a notable upsurge of nearly 15% over the past fortnight, mitigating losses incurred amid the much-anticipated launch of bitcoin exchange-traded funds (ETFs), which ultimately materialized as a sell-the-news event. This resurgence has propelled Bitcoin to its highest valuation since January 12, coinciding with record highs attained by the S&P 500 and Nasdaq-100 indices on Thursday.

ETF Absorption of Selling Pressure and On-chain Analysis

Several ETFs have absorbed over a billion dollars' worth of bitcoin selling pressure in recent weeks, underscoring sustained demand for the cryptocurrency. Additionally, on-chain analysis conducted by CryptoQuant suggests a deceleration in bitcoin outflows from miner wallets, typically indicative of selling activity.

Traders' Sentiment and Technical Indicators

Traders have expressed optimism regarding recent bitcoin price movements, attributing it to the alleviation of concerns surrounding further sell-offs. Notably, Bitcoin's ascent above its 50-day moving average late Wednesday has confirmed a bullish medium-term trajectory, allaying fears of a deeper correction. Alex Kuptsikevich, FxPro's senior market analyst, remarked on the strengthening weekly performance of Bitcoin and the broader crypto market, hinting at the potential for new highs.

Conclusion:Chinese New Year Boost

Bitcoin's surge above $46,000 coincides with the advent of the Chinese New Year, a period historically associated with favorable market conditions. The cryptocurrency's resilience amidst the ETF sell-off event, coupled with positive technical indicators and sustained demand, underscores growing optimism among traders regarding its future trajectory.