Can Bitcoin (BTC) Price Hit $45,000 in February 2024?

Key Insights:

• Bitcoin (BTC) price closed January above the $43,000 area, up 4% for the month.
• In the past week Bitcoin investors have moved over 5,000 BTC into long-term storage as the position for a bullish start to February. 
• Technical indicators suggest the bears could mount a significant resistance sell-wall around the $44,000 area.

Bitcoin (BTC) ended the month with a 9% price bounce above $43,000 after initially tumbling to a 50-day bottom of $38,500 on Tuesday, Jan 23.

Vital market data trends hint that investors are positioning for a bullish start to February 2024. 

Investors Have Moved BTC Worth $220M into Long-term Savings 

Bitcoin suffered bearish price action after the SEC delivered a spot ETF approval verdict on Jan 11, as speculators took advantage of the media euphoria to book profits. Now, the Bitcoin ETFs have traded for two full weeks, and the media hype and “sell-the-news” wave has cooled off.

After fiercely defending the $39,000 support, bullish Bitcoin investors are now making strategic moves to stage a significant price rebound in February. 

Cryptoquant’s exchange supply data monitors real-time changes in the number of BTC coins deposited across trading platforms. The latest readings shows that BTC holders have shifted a significant chunk of BTC off exchanges since the rebound phase began around Thursday Jan 25. 

As depicted below, a total of 2,016,054 BTC was deposited in crypto exchange-hosted wallets as of Thursday Jan 25. Interestingly, that figure has dropped rapidly to 2,101,137 at press time on Feb 2, 2024. 

This implies that investors have moved 4,917 BTC into long-term savings within the past week.

A decline in exchange supply is bullish for two major reasons. Firstly, it indicates that investors are opting for long-term storage rather than seek out short-term profit opportunities on trading platforms. 

In additional to the positive sentiment, it also means that a significantly lesser number of coins available to be traded on exchanges. Valued at the intraday average price of $43,000 the 4,917 BTC shifted from exchanges are worth approximately $220 million. 

With such a large deficit in spot market supply, an increase in demand in the coming week could trigger a major Bitcoin price breakout toward $45,000. 

Forecast: BTC Price Eyes $45,000 in February

Bitcoin price looks set to retest the $45,000 area in February 2024 as market events show that selling pressure from the post-ETF approval euphoria has cooled and investors have recently shifted $220 million into long-term savings. 

However, the Bollinger Bands signal highlights the key reversal points that could impact Bitcoin price action in the coming month. After breaking above 20-day Simple Moving Average (SMA) price of $41,828, the next major resistance is at the upper Bollinger band around $44,135.

If the bulls capitalize on this momentum to stage a decisive breakout above that area, Bitcoin price could retest $45,000 in February 2024 as predicted.

 Still, the bears could regain control if they can force a reversal below $38,000. But as highlighted by the lower Bollinger Band, the bulls could regroup at the $38,092 area to prevent further losses.