Bitcoin price closed the week positively, with the bulls recovering from a challenging start. The cryptocurrency is expected to remain at 41-43k for the next 4-5 weeks before a potential rally in mid-March due to the halving. BTC made a strong comeback, crossing the $43K mark from an intraday low of $41,735. With a market cap of around $843 billion, Bitcoin’s trading volume surged past $13 billion during this rise.
Here are the Key Reasons Behind the Surge:
The first thing that turned the market upside down is a positive sign for Bitcoin’s recent uptrend, which came from Grayscale, a digital asset management firm that reduced its outflows. Grayscale transferred 6,900 BTC (valued at $289.5 million) to Coinbase, marking a nearly 34% decrease in outflows compared to the previous transfer and a significant drop from last week’s average daily transfer of $530.2 million. This outflow reduction suggests Bitcoin’s ability to handle selling pressure, a good sign for market strength.
The next important factor is the liquidation. However, amidst the positive sentiment, the cryptocurrency market saw substantial liquidations, totaling $120.54 million in the last 24 hours. Most were from short positions ($63.41 million) compared to long positions ($57.13 million). Major exchanges like Binance and OKX contributed to these figures, indicating that bearish bets are being squeezed out as Bitcoin’s price rises.
Last, the Federal Reserve’s FOMC meeting is expected to boost Bitcoin’s price action, with a 97.9% chance that the Fed will maintain its 5.25%-5.5% range and pause rates. It could be a bullish event for Bitcoin in the near term.
What Next For BTC Price?
Crypto expert DonAlt believes that Bitcoin’s resilience to selling pressure is a key indicator of market strength. However, analyst Michael Van de Poppe focuses on short-term liquidation and suggests Bitcoin could consolidate around $43,000 after correcting to $38,500.
While there might be a push towards $48,000-$50,000 pre-halving, he believes altcoins will likely outperform now. Poppe underscores the overall bullish market trend, marking the significant importance of ETF approvals in shaping market dynamics.
