As Bitcoin (BTC) prices show signs of recovery after a recent decline, analysts are divided on whether the leading cryptocurrency has already bottomed out. Although Bitcoin has changed little over the past week, market experts have different opinions about the future direction of its price.
CrediBULL Crypto forecast
Renowned analyst CrediBULL Crypto is expecting a recovery in Bitcoin price, which could potentially reach the $40,000 area after its recent decline to $38,000. However, CrediBULL acknowledges the risk of a further decline and warns against a fall below $36,000.
The analyst's perspective hinges on the recent approval of spot Bitcoin ETF filings by the US Securities and Exchange Commission (SEC), bringing a new variable to the market.
CrediBULL Crypto suggests that while selling pressure may continue in the current zone, the potential for lower lows below $40,000 appears limited. If this scenario holds true, it could indicate that Bitcoin has already bottomed out.
Will BTC Reach $49,000?
In contrast, crypto analyst James Van Straten offers a more optimistic outlook, suggesting that Bitcoin could hit $49,000 again for the second time after ETF approval. He attributes this potential upside to stablecoin rotation, highlighting that a slight move away from stablecoins contributed to Bitcoin's rise to $42,000 on January 26th.
Van Straten claims that stablecoin rotation alone could push BTC price above $49,000 in the coming days. He also points to spot Bitcoin ETF inflows and highlights their role in the recent rally.
However, the rise in the Bitcoin stablecoin supply ratio (SSR) on Friday signals the possibility of a short-term correction due to increased selling pressure.
Bitcoin ETF: Mixed Impact
Experts study the impact of Bitcoin ETFs on the market and find a net positive effect despite outflows from the Grayscale Bitcoin ETF. On January 26, 2024, the Grayscale Bitcoin Spot ETF (GBTC) recorded a record single-day net outflow of $671 million, contributing to cumulative net outflows of $5.46 billion.
Despite these outflows, Bitcoin ETFs saw more inflows overall, reflecting positive market sentiment
The current state of Bitcoin
On Saturday, January 27, Bitcoin briefly hit $42,000 but struggled to maintain that level, causing daily gains to fall from over 5% to just over 2%. The current BTC price is $41,747.53, up 2.41%.
With a market cap of $818.73 billion and a 14.74% increase in 24-hour trading volume to $23 billion, Bitcoin's value remains below the daily high of $42,209.39.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.