Bitcoin’s Resilience Signals Bullish Momentum
In the last four-hour chart analysis, Bitcoin (#BTC) showcased remarkable resilience as buyers prevented a dip below the $50,850 mark, affirming the bullish momentum in the market. The cryptocurrency successfully breached the upper boundary of its ascending channel, surpassing the resistance level near its yearly high. This upward trend was accompanied by increased trading activity, with Bitcoin’s price breaking through the upper Bollinger Band, indicating a heightened market interest in the asset.
As Bitcoin’s price surged by 11.7%, a temporary consolidation of long positions might lead to a slight pullback. However, it is expected to find support in the $54,000 to $55,000 range before aiming for a new yearly high, targeting the major sell block around $58,500.
Ethereum Sets a New Yearly High
Ethereum (#ETH) experienced a predicted pullback to the $3,040 trading level, where buyers quickly regained control, pushing the price to a new yearly high of $3,272. A minor retracement to the $3,150 mark might occur before the next bullish impulse.
Cryptocurrency Investments Surge
According to a CoinShares report, the week of February 19-23, 2024, saw a significant inflow of $598 million into cryptocurrency funds, with the year-to-date figure surpassing $5.7 billion. Bitcoin remains the investment frontrunner, attracting $569.5 million in net inflows for the week, while Ethereum-based financial products secured second place with $16.8 million. Capital outflows were observed only in Solana funds. The United States continues to lead in digital asset investments, followed by notable inflows from Switzerland, Australia, and Brazil.
This positive trend in cryptocurrency-based financial instruments underscores growing investor interest and confidence among major players in the digital assets’ potential as an investment avenue, potentially leading to further market capitalization growth.
Altcoins Witness Significant Moves
- The announcement of a cloud computing service launch by Theta Network (#THETA) in Q2 triggered a 50% surge in its value against USDT.
- Pyth Network’s (#PYTH) listing on the Bithumb exchange resulted in a 38% price increase against USDT.
- The initiation of lending markets on the L2 Stacks network (#STX) led to a 26% rise in its value against USDT.
U.S. Stock Market Faces a Downturn
The U.S. stock market ended Monday’s trading session lower, affected by negative trends in utilities, telecommunications, and raw materials sectors. This week, investors will focus on updated U.S. economic growth data for the last quarter and the January report on financial health and consumer spending.