Bitcoin (BTC) Price Set to Rise Over 20% During Lunar New Year Holiday

Bitcoin (BTC) is likely to surge more than 20% during the Lunar New Year holiday, Matrixport analysts say.

While Bitcoin (BTC) has been fluctuating between $102,000 and $107,000 over the past week, investors and traders are questioning whether BTC is likely to see a price increase in the near future.

Accordingly, a latest prediction from Matrixport analysts says that Bitcoin price is poised to increase by more than 20% during the Lunar New Year holiday in 2025.

In the post on X, they shared that this potential prediction is based on Bitcoin’s historically consistent growth, 11 out of the last 12 Lunar New Year periods.

Citing historical data, analysts said BTC likely performed particularly well in the 20-day period starting January 29 this year. They said:

Bitcoin has recorded positive returns during the Lunar New Year in 11 of the past 12 years, posting an impressive 83% success rate during the period.

From a technical perspective, daily reversal indicators reached oversold levels last week, suggesting a potential strengthening of support. However, weekly indicators still suggest that BTC may be overbought.

From a macroeconomic perspective, tightening liquidity and the US Federal Reserve's (Fed) hawkish stance continue to pose challenges to the market.

Despite these negatives, bullish factors such as the upcoming potential BTC Reserve Fund in the US and the pro-crypto stance of the new administration under Donald Trump could provide the necessary balance.

Finally, analysts based on the historical trend of the last two years, Bitcoin price increased by 26% and 23% during this holiday season, which further strengthens their belief that Bitcoin is ready for a price increase of more than 20% by the end of January 2025.