Bitcoin Analysts Debate: Has BTC Hit Rock Bottom or Awaits Further Correction?

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As Bitcoin (BTC) prices show signs of recovery following a recent dip, analysts are divided on whether the leading cryptocurrency has already hit its bottom. Despite Bitcoin’s nearly zero percentage change over the past week, market experts offer contrasting opinions on the future trajectory of its price.

CrediBULL Crypto’s Prediction 

Renowned analyst CrediBULL Crypto anticipates a bounce back in Bitcoin’s price, potentially reaching the $40,000 range after its recent dip to $38,000. However, CrediBULL acknowledges the risk of a further drop, cautioning against going below $36,000. 

The analyst’s perspective hinges on the recent approval of spot Bitcoin ETF filings by the U.S. Securities and Exchange Commission (SEC), introducing a new variable to the market.

CrediBULL Crypto suggests that while selling pressure could persist in the current zone, the potential for lower lows below $40,000 appears limited. If this scenario holds, it could indicate that Bitcoin has already reached its bottom.

Will BTC Touch $49,000?

In contrast, crypto analyst James Van Straten provides a more optimistic outlook, suggesting that Bitcoin could revisit the $49,000 mark for the second time after ETF approval. He attributes this potential bullish rally to stablecoin rotation, highlighting that a slight shift from stablecoins contributed to Bitcoin’s rise to $42,000 on January 26.

Van Straten contends that stablecoin rotation alone could drive BTC prices above $49,000 in the coming days. 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 signals the possibility of a short-term correction due to increased selling pressure.

Bitcoin ETF: Mixed Impact

Experts delve into the impact of Bitcoin ETFs on the market, noting a net positive effect despite outflows from the Grayscale Bitcoin ETF. On January 26, 2024, Grayscale Bitcoin spot ETF (GBTC) experienced a record single-day net outflow of $671 million, contributing to cumulative net outflows reaching $5.46 billion. 

Despite these outflows, Bitcoin ETFs as a whole have seen more inflows, reflecting a positive market sentiment

Bitcoin’s Current State

As of Saturday, January 27, Bitcoin briefly touched $42,000 but struggled to maintain this level, resulting in daily gains slipping from over 5% to just above 2%. The current BTC price stands at $41,747.53, reflecting a 2.41% increase. 

With a market capitalization of $818.73 billion and a 14.74% rise in the 24-hour trade volume to $23 billion, Bitcoin’s value remains below the day’s high of $42,209.39.