Bitcoin Recovery: Analyst Indicates Possible Bottom Reached

Amidst the recent recovery in Bitcoin (BTC) prices following a dip, the cryptocurrency market is yet to witness a comprehensive adjustment in the values of alternative coins.

BTC is currently exhibiting minimal change, nearly zero percent, in comparison to its value a week ago, a trend possibly influenced by the recent record-high of the S&P 500 Index.

According to insights from CrediBULL Crypto, there was an anticipation that BTC would rebound towards the $40,000 range after experiencing a dip to around $38,000 last week.

Quick 6 minute $BTC video update.

Is the bottom in? I think there is a decent chance it is.

Let's take a closer look.

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— CrediBULL Crypto (@CredibleCrypto) January 26, 2024

However, this rebound carries the risk of another slight decrease, possibly to approximately $37,000, though not falling below the $36,000 threshold. The uncertainty lingers on whether BTC has reached its bottom in the recent market movement, especially in light of the U.S. Securities and Exchange Commission’s (SEC) approval of spot Bitcoin ETF filings.

CrediBULL Crypto foresees a notable selling pressure for BTC in the current range, with the rebound from recent lows potentially prompting profit-taking. Nonetheless, he suggests that the chances of BTC dropping below $40,000 are limited, indicating that the bottom might have been established.

Considering the impact of Bitcoin ETFs, the analyst notes a positive overall effect, with increased inflows to other ETFs despite the outflows from the Grayscale Bitcoin ETF. On January 26, 2024, the Grayscale Bitcoin spot ETF (GBTC) experienced a record net outflow of $671 million. The cumulative net outflows for the Grayscale ETF have reached $5.46 billion, while it still holds $19.99 billion in net assets.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.