Bitcoin (BTC) experienced a 3% increase on February 8, bringing some much-needed positivity to the crypto markets. The price of BTC focused on $44,700, reaching its highest levels in almost a month. This movement provided some relief from the tight range BTC/USD has been experiencing since mid-January.
Michaël van de Poppe, founder and CEO of MN Trading, noted that Bitcoin was approaching $45,000 and the range was still defined. He referred to the short-term BTC price timeline leading up to the upcoming block subsidy halving event, scheduled for around April 17.
However, some traders remained cautious. J.A. Maartunn, a contributor to on-chain analytics platform CryptoQuant, warned that the recent pump in BTC price was driven by leverage, suggesting its longevity may be limited.
In the past, snap BTC price moves have been caused by significant increases in open interest over a short period. For example, in October, BTC experienced a price surge from $28,000 due to such factors.
To counter any sudden market turnaround, financial commentator Tedtalksmacro highlighted the increasing bid liquidity compared to a decrease in sell-side pressure.
The halving event continues to generate bullish predictions for BTC price. Some experts, including former BitMEX CEO Arthur Hayes, believe that Bitcoin could reach sky-high prices. Others, like popular commentator Fred Krueger, have theorized that BTC could surpass $60,000 before mid-April.
James Van Straten, a research and data analyst at crypto insights firm CryptoSlate, also expressed optimism about Bitcoin’s potential, citing the resurgent instability in the US regional banking sector.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment or trading decisions.