Bitcoin Bounces To $42K: Analyst Eyes $49K Boost

Bitcoin (BTC) is returning after experiencing major price declines lately. The world’s largest cryptocurrency value by market capitalization is approaching $42,000 again after dropping below $39,000 earlier this week. Furthermore, a prominent crypto analyst has made an optimistic short-term prediction for the Bitcoin price following these gains.

Crypto analyst James Van Straten has suggested the Bitcoin price could touch a high of $49,000 for the second time after ETF approval. He noted that rotation from stablecoins into Bitcoin could drive this bullish rally. Specifically, Straten said that a slight rotation out of stablecoins pushed Bitcoin up to $42,000 last Friday, Jan 26.

As such, rotation out of stablecoins alone could push the BTC price over $49,000 in the coming days. In addition, he mentioned that inflows from Spot Bitcoin ETFs have also played a major role in Bitcoin’s recent rebound.

According to data from Crypto Quant, the Bitcoin Stablecoin Supply Ratio (SSR) fell to 11.22 on Thursday from 11.28 the previous day, which could have created bullish sentiment due to potential increased purchasing pressure.

However, the BTC SSR jumped to 11.70 on Friday, indicating potential selling pressure that could lead to a correction soon. Nevertheless, this potentially bearish development has not affected the gains in Bitcoin’s price so far.

Bitcoin Hits $42K, Faces Resistance; Market Cap Exceeds $818B

Bitcoin hit $42,000 on Friday but was unable to sustain that level. Furthermore, the BTC price moved further from that threshold as its daily gains declined from over 5% to just above 2%. The Bitcoin price is USD 42,416.62 with a 24-hour trading volume of $13,664,252,508, Jan 28.

Source: CoinMarketCap

Moreover, the cryptocurrency still boasts an unrivaled market capitalization of $818.73 billion, rising 2.39%. Bitcoin’s 24-hour trade volume also increased 14.74% to $23 billion. However, the largest crypto’s value remains well below its intraday high of $42,209.39.

On the other hand, the TradingView technical indicators point to a ‘buy’ signal for BTC currently. According to TradingView, the BTC price trades higher than its 10-day and 50-day exponential moving averages of $41,745 and $41,262, signaling an overall bullish trend.

Related Reading | Ethereum ETF In Limbo As SEC Seeks Public Feedback

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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