As the price of Bitcoin (BTC), which recently suffered a decline, shows signs of recovery, analysts are divided on whether the leading cryptocurrency has already bottomed. Despite Bitcoin’s near 0% volatility over the past week, market experts offer contrasting opinions on its future price trajectory.
CrediBULL Crypto Predictions
Prominent analyst CrediBULL Crypto expects Bitcoin price to rebound and potentially reach the $40,000 range after recently falling to $38,000. However, CrediBULL acknowledged the risk of further downside and warned against falling below $36,000.
The analyst’s view hinges on the U.S. Securities and Exchange Commission’s (SEC) recent approval of an application for a spot Bitcoin ETF, introducing a new variable to the market.
CrediBULL Crypto suggests that selling pressure may persist in the current zone, but lows below $40,000 appear limited. If this scenario holds, it could indicate that Bitcoin has already reached bottom.
Will BTC reach $49,000?
In contrast, cryptocurrency analyst James Van Straten offers a more optimistic outlook, suggesting that Bitcoin could revisit the $49,000 level for a second time following ETF approval. He attributed this potential bullish rally to the stablecoin cycle, highlighting that small changes in stablecoins contributed to Bitcoin’s January 26 rally above $42,000.
Van Straten argues that stablecoin circulation alone could push the BTC price above $49,000 in the future. He also points to spot Bitcoin ETF inflows, emphasizing their role in the recent rebound.
However, the rise in the Bitcoin Stablecoin Supply Ratio (SSR) on Friday suggests a possible short-term correction due to increased selling pressure.
Bitcoin ETF: Mixed Impact
Experts examine the impact of Bitcoin ETFs on the market, noting a net positive effect despite the outflows of the Grayscale Bitcoin ETF. On January 26, 2024, the Grayscale Bitcoin Spot ETF (GBTC) experienced a record daily net outflow of $671 million, bringing cumulative net outflow to $5.46 billion.
Despite these outflows, Bitcoin ETFs overall saw more inflows, reflecting positive market sentiment.
Current State of Bitcoin
As of Saturday, January 27, Bitcoin briefly reached $42,000, but has struggled to maintain that level, with daily gains falling from over 5% to just above 2%. The current BTC price is $41,747.53, up 2.41%.
With a market capitalization of $818.73 billion and 24-hour trading volume up 14.74% to $23 billion, Bitcoin’s value remained below the day’s high of $42,209.39.