Bitcoin is on the rise, recently breaking the $42,000 resistance after facing some setbacks post the approval of the spot exchange-traded fund (ETF). While the current vibe in the market is positive, there’s a common belief that the ETF approval will have a lasting impact on Bitcoin.
Crypto expert Michaël Poppe thinks the ETF will gradually shape Bitcoin’s future, predicting a potential high of $500,000 in the coming years due to increased adoption. He emphasizes that this impact won’t happen overnight but will unfold over the next few years.
After crossing $42,000, Poppe suggests a consolidation phase for Bitcoin in the $37,000 to $48,000 range in the months ahead, indicating a bit of a breather for the cryptocurrency.
On the flip side, Fiery Trading, another crypto analyst, takes a more immediate stance. He’s cautious about the short-term bullish trend, pointing out the significance of the $42,200 resistance level. A rejection here could mean more bearish dominance, while a breakthrough might pave the way for further gains, possibly hitting $43,500 or more. Fiery Trading also acknowledges the ETF’s potential long-term impact.
The sell-off after the ETF approval, attributed to Grayscale Bitcoin Trust (GBTC) outflows, seems to be slowing down, contributing to recent Bitcoin gains. Other funds are also seeing increased inflows, with BlackRock’s iShares Bitcoin Trust crossing $2 billion in total inflows as of January 26.
As of now, Bitcoin is trading at $42,491, showing daily gains of nearly 2% and a weekly increase of 1.8%. Technical analysis paints a positive picture, with various indicators suggesting a ‘buy.’
In summary, even though Bitcoin is seeing short-term gains, analysts are exercising caution, suggesting that the price trajectory remains uncertain as long as it stays below $48,000.
