Bitcoin (BTC) Price Set for Bullish Rebound to $45k in February
Key Insights:
- Bitcoin (BTC) price hit a weekly timeframe peak of $42,200 on Friday, up from the 50-day low of $39,000 recorded on Tuesday, Jan 23.
- In the last 48 hours, Bitcoin investors have moved over 5,000 BTC into long-term storage as the position for a bullish start to February.
- The bears could mount a significant resistance sell-wall at the 20-day SMA price of $42,500.
Bitcoin (BTC) ended the week with a 9% price bounce above $42,200 after initially tumbling to a 50-day bottom of $38,500 on Tuesday, Jan 23.
Vital market data trends hint that investors are positioning for a bullish start to February 2024.
Investors Shifted BTC Worth $210M into Long-term Savings in the Last 48 Hours
Bitcoin suffered bearish price action after the SEC delivered a spot ETF approval verdict on Jan 11, as speculators took advantage of the media euphoria to book profits. Now, the Bitcoin ETFs have traded for two full weeks, and the media hype and “sell-the-news” wave has cooled off.
After fiercely defending the $39,000 support, bullish Bitcoin investors are now making strategic moves to stage a significant price rebound in February.
Cryptoquant’s exchange supply data monitors real-time changes in the number of BTC coins deposited across trading platforms. The latest readings shows that BTC holders have shifted a significant chunk of BTC off exchanges since the rebound phase began around Thursday Jan 25.
As depicted below, a total of 2,016,054 BTC was deposited in crypto exchange-hosted wallets as of Thursday Jan 25. Interestingly, that figure has dropped rapidly to 2,101,137 at press time on Saturday Jan 27.
This implies that investors have moved 4,917 BTC into long-term savings within the last 48 hours.
A decline in exchange supply is bullish for two major reasons. Firstly, it indicates that investors are opting for long-term storage rather than seek out short-term profit opportunities on trading platforms.
In additional to the positive sentiment, it also means that a significantly lesser number of coins available to be traded on exchanges. Valued at the intraday average price of $42,000 on Jan 27, the 4,917 BTC shifted from exchanges are worth approximately $210 million.
With such a large deficit in spot market supply, an increase in demand in the coming week could trigger a major Bitcoin price breakout toward $45,000.
Forecast: Can BTC Price Reach $45,000 in February?
Bitcoin price looks set to revisit $45,000 in February as market events show that selling pressure from the post-ETF approval euphoria has cooled and investors have recently shifted $210 million into long-term savings.
However, the Bollinger Bands signal highlights the key reversal points that could impact Bitcoin price action in the coming week. The technical indicator depicts that the 20-day Simple Moving Average (SMA) price of $42,555 poses a major initial resistance.
But if the bulls can stage a significant breakout above that zone, BTC price could rebound toward $45,000 in February 2024 as predicted.
Still, the bears could regain control if they can force a reversal below $38,000. But as highlighted by the lower Bollinger Band, the bulls could regroup at the $38,092 area to prevent further losses.
