Bitcoin briefly surges to $49k, market remains volatile

Crypto market overview: In last 24 hours, overall crypto market displayed volatility, especially after launch of BTC spot ETF. Notably, spot Bitcoin ETFs achieved a tring volume surpassing $4.5 billion on ir first day, indicating positive market sentiment. Bitcoin is currently hovering close to $46,000 with close to a 1 per cent dip when compared to yesterday. 

On or hand, Crypto Fear and Greed Index also witnessed a 5-point decline, reaching 71 points from extreme greed mark of 76 points. 

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CoinDCX Research Team while talking to Republic Business said, “BTC touched a new higher high at $49,000 but experienced a quick drop to $46,000, influenced by higher-than-expected CPI data, which h a negative impact on market. BTC dominance has been on a declining trend, providing room for altcoins to gain traction. ETH is positioned near key level of $2,640 and is currently consolidating below that resistance. key support level for ETH stands at $2,450.” 

Underlining increasing market volatility in market, Rajagopal Menon, Vice President, WazirX said, “Bitcoin (BTC) surged past $49,000 mark, a threshold unseen since December 2021, driven by launch of US-based spot Bitcoin Exchange-Tred Funds (ETFs). After rising from under $46,000 to touch $49,042 in early US tring, BTC pulled back but held below $46,000, marking a minor 1 per cent dip in 24 hours. ETF debut significantly amplified BTC's price volatility.” 

Recent data indicates a waning bullish trend for Bitcoin, with hourly MACD signalling reduced upward momentum. Simultaneously, BTC/USD hourly RSI has dipped below critical 50 threshold. Notable support zones are situated at $45,900 and $45,500, while formidable resistance levels are observed at $47,300, $48,200, and $49,000, ded Menon.

Revised price outlook

Parth Chaturvedi, Investments Le, CoinSwitch Ventures said that despite increasing market volatility, investor strength has furr strengned with a revision in analyst predictions including Cathie Wood, ARK Invest's CEO. Cathie, who h previously predicted BTC’s price to reach $1 million by 2030, has revised her prediction to $1.5 million in a bullish scenario. 

Edul Patel, CEO of Mudrex said, “Currently, Bitcoin consolidates around $46,000 level, influenced by liquidation of short positions across market. Resistance stands at $47,300, and support remains firm at $45,500 level. Optimism is high with recent introduction of spot Bitcoin ETFs, and this positive shift is evident in fear and greed index, signalling a prevailing sense of greed in market. A battle for dominance ensues between bears and bulls, shaping ongoing market dynamics.” 

Ereum looks strong

Vikram Subburaj, CEO, Giottus shared insights into current market movement and future outlook for major altcoins. Subburaj said, “Following ETF approval by US SEC, total volume generated on first day of spot Bitcoin ETF tring stood at $4.6 billion. Greyscale led pack, by registering $1.2 billion in first hour of tring. Key altcoins – especially XRP and Solana – have shed ir gains while Ereum is holding on to $2,600 level.” 

Sharing short-term targets for key altcoins, Subburaj wrote, “Upside: Ereum ($2,650), BNB ($320), Solana ($106), Cardano ($0.61), and Polygon ($0.96). Support: Ereum ($2,480), BNB ($300), Solana ($95), Cardano ($0.53), and Polygon ($0.87).”

In or news, Ereum co-founder Vitalik Buterin proposed an increase in network’s gas fees by 33 per cent last evening. This move would raise network's transaction capacity and could reduce fees for end-users, but could increase operational costs for validators. As a reaction from markets to this news, ETH witnessed a slight sell-off. However, ETH continues to tre at over $2,600. ditionally, Circle Internet Financial, company behind USDC stablecoin, has submitted a request to offer its shares to public, marking its initial public offering (IPO).