Beijing, China – Bitcoin (BTC) surged past $46,000 on Friday, marking a one-month high as East Asia entered into its most significant festival of the year. The CoinDesk 20 Index, which measures the largest cryptocurrencies, saw an increase of over 2%.
The surge in Bitcoin’s value coincides with the beginning of the Chinese New Year, a time believed to bring luck according to the Chinese Zodiac. In Mandarin Chinese, the word for dragon sounds similar to “long,” adding to the appeal of the cryptocurrency among traders.
Analysts from 10X Research have predicted that Bitcoin could reach as high as $48,000 in the coming days, citing historical gains during the Chinese New Year period. This would mark an 11% increase from its current value.
Over the past two weeks, Bitcoin has gained nearly 15%, rebounding from losses that occurred when the anticipated bitcoin exchange-traded funds (ETFs) resulted in a sell-off. The cryptocurrency reached its highest level since January 12th, coinciding with the S&P500 and Nasdaq-100 indices hitting all-time highs.
Data from on-chain analysis firm CryptoQuant suggests that movements of Bitcoin out of miner wallets, which indicate selling, have slowed down. Additionally, the cryptocurrency rose above its 50-day moving average, confirming a bullish medium-term trend and easing fears of a deeper correction, according to Alex Kuptsikevich, FxPro senior market analyst.
Overall, the recent surge in Bitcoin’s value and the slowing movements of Bitcoin out of miner wallets indicate a potential upward trend for the cryptocurrency. As East Asia celebrates the Chinese New Year, the memetic value of Bitcoin among traders may continue to drive its value upwards.