The world’s biggest and best-known cryptocurrency Bitcoin (BTC) surged above the $45,000 mark on Tuesday for the first time since April 2022, fuelled by market expectations for the approval of Bitcoin spot ETFs.

Bitcoin touched a 21-month peak of $45,488, having gained nearly 155% last year in the strongest performance since 2020. BTC was last up 6.9% at $45,264 but remains far off the record high of $69,000 it touched in November 2021. Meanwhile, the second largest crypto, Ethereum rose 4.9% to $2,386.

“Bitcoin started the new year by surpassing the US$45,000 level, driven by market expectations for the approval of Bitcoin spot ETFs. A sustained bullish momentum could propel BTC to US$46,300 and subsequently US$47,600; however, if not, the support level is pegged at US$43,700,” said Edul Patel, CEO of Mudrex.

Investor focus has been squarely on whether the US securities regulator will soon approve a spot Bitcoin ETF, which would open up the Bitcoin market to millions of investors.

Other popular altcoins, such as Solana and Avalanche, rose 9% and 10%, respectively. XRP, Cardano, Dogecoin, Polkadot, Chainlink, and Shiba Inu surged 3-7%.

The global cryptocurrency market cap rose 6.02% to around $1.74 trillion in the last 24 hours.

The total volume in DeFi is currently $7.43 billion, 12.62% of the total crypto market 24-hour volume. The volume of all stablecoins is now $50.74 billion, which is 86.21% of the total crypto market 24-hour volume.Bitcoin’s dominance is currently 50.94%, according to CoinMarketCap. BTC volume in the last 24 hours rose 56% to $26.3 billion.

“BTC successfully surpassed a significant resistance at $44,500, now aiming for new resistance levels at $45,800 and $48,000. The previous resistance at $44,500 could act as a support, providing confirmation of the bullish trend through a retest,” said CoinDCX Research Team.

“While ETH has been relatively slow in recent days, it continues to establish new higher highs. The real momentum for ETH is expected to pick up once BTC stabilizes. Technically, ETH needs to clear the resistance level at $2,450 to initiate a strong upward movement,” it said.

Tech View by Sathvik Vishwanath, Co-Founder & CEO, Unocoin
Bitcoin’s recent rally has placed it at $44,700, breaking above previously discussed resistance levels. The cryptocurrency’s positive momentum challenges the bearish outlook presented yesterday and is now trading comfortably above the critical $42,965 level.

A break of the resistance points at $43,857, $44,679 and $45,962 signals potential strength in the uptrend. The Relative Strength Index (RSI) at 39 previously indicated caution, but recent price gains add optimism.

Despite staying below the 50-day EMA, now at $42,983, Bitcoin’s ability to resist a bearish engulfing pattern near $42,985 suggests resilience. The ascending trendline support at $41,750 remains a crucial defence, shaping a more bullish near-term outlook amid evolving market momentum.

(With inputs from agencies)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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