Jan 09, 2024 Frank Stewskid

Why did Bitcoin Pass $47,000 in Early January?

Bitcoin's remarkable surge past the $47,000 mark in early January 2024 has caught the attention of both crypto enthusiasts and financial analysts. This significant increase, the highest marks the highest level at which the cryptocurrency has traded against USD since late 2021.

What Triggered Bitcoin's Latest Price Surge?

One of the primary catalysts for the recent Bitcoin price surge is the growing optimism surrounding the approval of spot Bitcoin ETFs in the U.S. Heavyweights in traditional finance, such as BlackRock and VanEck, have shown keen interest, with VanEck seeding its potential spot Bitcoin ETF with a substantial initial investment​​.

Adding to the bullish sentiment, Standard Chartered projected that Bitcoin could exceed $200,000 by the end of 2025, assuming significant capital inflows from the ETFs​​.

The $47,000 level was a major resistance point that Bitcoin had struggled to surpass since December 2021. Overcoming this barrier indicates a strong bullish sentiment in the market. An increase in trading volume accompanied the price rally, further reflecting enhanced investor engagement and confidence. The Relative Strength Index (RSI), a momentum oscillator, entered an overbought territory during the Bitcoin price surge. While this often points to a potential price pullback, it also underscored the strong momentum behind the rally.

Naturally, the increase in Bitcoin's price moved above both the 50-day and 200-day moving averages. Crossing above these averages is a bullish signal, often indicating a potential long-term upward trend. 

What Does The Current Surge in Price Means for Bitcoin?

Even though at first glance the combination of technical indicators and market sentiments suggests a robust outlook for Bitcoin, investors should be mindful of the volatility inherent in cryptocurrency markets. The impact of regulatory decisions and global economic factors could also sway the market in unforeseen ways.


Frank Stewskid

Frank Stewskid

Last updated: Jan 09, 2024

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