Bitcoin Achieves Four-Week Winning Streak: Bitcoin, the largest cryptocurrency, has achieved four consecutive weeks of gains and is approaching $52,000 amid expectations of setting a new record.
Topics
Cryptocurrency Market Downturn
Weekly Gains
Bitcoin Market
Cryptocurrency Market Downturn
Just a year ago, the crypto market was dominated by a downturn,
and the mere thought of Bitcoin reaching a record level approaching $69,000
was considered a dream or wishful thinking.
Now, after 12 months, studies have begun to suggest the possibility of this.
“The technical analysis comparing the rise of the largest digital assets to $52,000
with previous fluctuations forecasts further gains in the coming weeks.
Some of these studies are outlined below—
with the caveat that the past is not always a reliable indicator of the future,
especially for a young and volatile asset like Bitcoin.”
Weekly Gains
Since the beginning of 2023, the price of Bitcoin has tripled,
with optimism surrounding the approval of exchange-traded funds (ETFs)
in the US stock market for direct Bitcoin trading,
in addition to the approaching decrease in supply from the halving.
The rise has ensured consecutive increases for four weeks until February 18.
Over the past five years, the value of the cryptocurrency
has increased by an average of 49% following a series of four-week gains,
according to a Bloomberg report, which could push the price of Bitcoin to $78,000.
Richard Galvin, founder of investment firm “DACM,”
which focuses on cryptocurrencies, said: “The Bitcoin market remains strong.”
Bitcoin Market
Speculators use option contracts for a variety of trading approaches.
Data from Deribit, the largest digital options exchange,
show that Bitcoin call spreads are among the most popular strategies currently.
This indicates that investors see the potential for further increases in the price of Bitcoin,
but not necessarily significant ones.
A bull call spread involves purchasing a call option,
which is partially funded by selling a contract of the same term at a higher strike price.
Caroline Mauron, the co-founder of digital asset derivatives liquidity provider Orbit Markets, said:
“The options market as a whole is currently estimating the probability
of achieving a new record level before the halving at around 20% to 25%, which seems acceptable to us.”
Bitcoin was little changed at $51,956
, close to its highest level in over two years. Among smaller currencies,
the Worldcoin token from a project co-founded by OpenAI’s Sam Altman was notable,
surging 32% in the past few hours, as CoinGecko figures show.
Bitcoin Achieves Four-Week Winning Streak