Cryptocurrencies have been trending higher since late Wednesday, with Bitcoin price leading its peers backed by a break above $44,000. Investors welcomed this move with open arms, affirming positive sentiment in the market. Altcoins are also waking up after weeks of doldrums and weighty overhead pressure. For instance, Ethereum is back above $2,400 paving the way for significant increases in Solana, XRP, and Cardano prices.

Bitcoin (BTC)

After undergoing a squeeze characterized by limited volatility, Bitcoin steadied its north-facing trend and regained support at $43,000 as well as $44,000. This surprise move follows impressive performance in the BTC ETF arena, where most products are now achieving encouraging net inflows.

ETF data from SoSoValue shows that the total inflow of all spot BTC ETFs reached $146 million, equal to the net inflows for at least nine consecutive days.

According to SoSoValue, on February 7, the total net inflow of Bitcoin spot ETFs was US$146 million, which has been net inflows for nine consecutive days. The Grayscale ETF GBTC had a single-day net outflow of US$80.78 million, and the other nine ETFs except Grayscale had a total…

— Wu Blockchain (@WuBlockchain) February 8, 2024

The ETFs are still new, but they are attracting more investors who see the long-term potential of Bitcoin. The key level to watch is $45,000. If Bitcoin breaks above it, it could rally to $48,000 or higher.

The Bitcoin halving in April is another bullish factor. It could spark FOMO among investors who want to profit from a possible bull run.

On the downside, traders should watch out for support from the 20-day Exponential Moving Average (EMA) and the 50-day EMA (the blue and red lines catching up to the price on the chart).

Levels To Watch:

• The Moving Average Convergence Divergence (MACD) is above neutral, backing the uptrend.
• Resistance to watch: $45,000
• Support to watch: The 20-day EMA, $42,000, $40,000.

Read also: Bitcoin Halving 2024: How Miners Will Influence BTC Price Future Trend

Ethereum (ETH)

The second-largest cryptocurrency after testing support at $2,200 climbed above $2,400 on Wednesday, underscoring the fresh liquidity entering the altcoins market.

Investors turned to altcoins like ETH and SOL after Bitcoin plunged below $39,000 with its recovery stalling below $44,000. The Dencun upgrade is one among many factors driving interest in Ether.

Developers successfully launched the upgrade on the network’s third and last testnet, Holesky on February 7 paving the way for the final debut on the mainnnet.

If traders and speculators find Ethereum attractive and increase exposure, resistance in the yellow band will not delay the breakout to $2,700 and subsequently above $3,000 any longer.

Support at $2,400 will be crucial for the uptrend’s continuation. However, if bypassed, the channel’s middle and lower boundaries will come in handy to stop a return to $2,200.

Solana (SOL)

Solana has a history of rewarding those who buy the dips. Despite facing high volatility this week after its network went offline, halting the production of new blocks, SOL price is trending higher along with its altcoin peers.

The competitive smart contracts token, which boats a high transaction throughput, lower transaction costs, and enviable scalability has reclaimed the $100 S/R, underlining the faith investors have in it.

The Ichimoku Cloud reinforces the bullish grip on Solana, suggesting that the path with the least resistance is gradually flipping upward. A daily close above $100 would confirm the return of the bulls, propping SOL for the next leg up to $120. Solana is one of the altcoins with the potential to set a new record high in 2024.

Generally, the crypto market is beginning to thaw as the Bitcoin halving approaches. The event which halves miner rewards, significantly reduces the supply of Bitcoin. With demand increasing or staying the same, there is usually a high probability for a rally in Bitcoin price and among altcoins.

For many people, this period is crucial as it allows the accumulation of cryptocurrency before halving. Despite the hype around halving, price increases are not guaranteed and past performance does not always mirror future performance. That said, due diligence must be conducted while investing the amount you are willing to lose in case the market moves in the opposite direction.