Despite recent price drops, Bitcoin is still on track for further gains, according to BitQuant. Based on technical analysis, the analyst said predicted that the world's most valuable coin will likely be at $61,000, not $50,000 as some analysts have suggested.
Bitcoin has room to grow and could peak at $61,000
The analyst shares a screenshot of So far, prices are lower, trading below $45,000, and the uptrend continues despite the recent slowdown.
BTC has yet to retest the 2X100 EMA | Source: BitQuant on X
For this reason, BitQuant is confident that the recent decline was a temporary correction. Accordingly, BTC is likely to extend its gains and break through the immediate resistance levels at $45,000 and even $50,000 in the short to medium term.
Still, it should be noted that the 2X100 EMA is a technical indicator and may be lagging. Because the indicator averages past prices, it may not be accurate and indicative of current events and price expectations.
To illustrate, in the last bear market, Bitcoin prices fell below the 2X100 EMA as the coin fell as low as $16,000 by November 2022. This development was not expected by the community and surprised followers.
Looking at the Bitcoin price movement in the daily chart so far, the path of least resistance is north. Although the approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) was expected to immediately boost prices, BTC unexpectedly crashed.
Bitcoin price trending upwards on daily chart | Source: BTCUSDT on Binance, TradingView
The bears appear to be in control and have recently pushed prices below a short-term support level. For this reason, the immediate trend is consistent with the January 12 bear market. Based on this formation, if bears take the lead, BTC could fall to $40,000 or lower.
BTC demand is increasing
Despite this pessimistic outlook, the encouraging increase in capital into eligible spot Bitcoin ETFs is optimistic. Investor Fred Krueger Remarks that in the last five days alone, IBIT, the spot Bitcoin ETF from BlackRock, the world's largest asset manager, received $1 billion.
Given the speed of inflows, not only in IBIT but also in other spot Bitcoin ETFs, Krueger believes that BTC is undervalued at spot prices. The investor estimates that spot Bitcoin ETF issuers now hold over 650,000 BTC, up from 619,000 BTC on January 1st. This suggests that institutional investors are becoming increasingly bullish on Bitcoin and prices, even if low, could recover in the future.
Feature image from Canva, chart from TradingView
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