Bitcoin approaches new yearly highs after erasing 20% dip

Bitcoin touched the $49,000 on Feb. 12, reclaiming the price levels it hit after the historic approval of spot Exchange-Traded Funds (ETFs) related to the flagship crypto at the start of January.

The flagship crypto was trading at $49,725 as of press time, according to CryptoSlate data.

Bitcoin surged as U.S. markets opened for trading, erasing the 20% drop following the ETF approvals as traders executed a “buy the rumor, sell the news” event, and whales began taking profit on their holdings from the 160% rise over 2023.

New ATH

Analysts and experts are pointing to a surge to $50,000 and possibly a new all-time high price before the halving — which is now just over 65 days away.

Market analysis indicates Bitcoin’s price is consolidating just beneath a pivotal resistance level, hinting at a potential breakout or adjustment phase.

The “Newborn Nine” ETFs launched in January have shown strong performance, breaking the $10 billion AUM level within the first month of trading and becoming some of the biggest Bitcoin holding entities in the world.

The performance has caused a significant surge in optimism around Bitcoin and its rising value.

Sentiment mixed

Notably, the sentiment surrounding the $50,000 milestone for Bitcoin is mixed, with some analysts advocating for caution.

Breaking past certain technical resistance levels, such as the Fibonacci retracement level at approximately $48,300, could catalyze further gains.

However, the market should also be prepared for various scenarios, including potential pullbacks to retest support levels.