Bitcoin traders are anticipating a swift move towards the $50,000 mark, fueled by optimism over institutional buying as Wall Street trading kicks off. The price of Bitcoin surged to $49,755, approaching new two-year highs on February 12. Despite initial consolidation below key resistance levels, traders are optimistic about a potential breakout.
Popular trader and content creator Mac observed the consolidation under the previous top, suggesting a pattern that historically led to upward explosions. He confidently predicted a move to $50,000 in the near term. Another trader, Jelle, positioned BTC/USD favorably for a run at all-time highs, emphasizing Bitcoin’s historical tendency to quickly traverse its price range.
However, not all analysts share the same level of optimism. Keith Alan, co-founder of trading resource Material Indicators, urged caution. While acknowledging the potential for Bitcoin to retest support and establish a foundation for further gains, Alan warned against assuming a consolidation scenario. He highlighted the strong sentiment around the $50,000 mark and the limited ask liquidity above it, indicating the possibility of a rapid price surge if the Golden Pocket (.618 Fib) at $48,300 is breached.
In parallel with the market dynamics, Bitcoin exchange-traded funds (ETFs) in the United States witnessed increased interest. Inflows into these ETFs had their second-best day the previous week, attracting over $400 million in a single day across nine products on February 9. Despite outflows of around 2,900 BTC ($140 million) from the Grayscale Bitcoin Trust (GBTC) on February 12, the overall trend in ETF flows remained positive for the 11th consecutive day, according to data from crypto research firm Arkham.