Bitcoin (BTC) has rebounded strongly after a significant price decline, with its value surging above $42,000 on January 26th, following a dip below $39,000 earlier in the week. Renowned cryptocurrency analyst James Van Straten has provided an optimistic short-term forecast for the leading digital currency.
Optimistic Outlook for Bitcoin’s Price
James Van Straten, a cryptocurrency analyst, predicts that Bitcoin’s price might ascend to $49,000, potentially for the second time after the U.S. approves its first spot ETF. He notes that a minor shift in stablecoin allocations has contributed to Bitcoin’s rise above $42,000 on January 26th and anticipates that this movement will bolster the expected rally.
The stablecoin shift is expected to propel Bitcoin’s price beyond $49,000 shortly. Straten also mentions the significant impact of inflows from spot Bitcoin ETFs on Bitcoin’s recent recovery. CryptoQuant data indicates that the Bitcoin Stablecoin Supply Ratio (SSR) decreased, suggesting a rally trigger due to probable buying pressure.
Despite the Bitcoin SSR experiencing an increase on January 26th, which could suggest potential selling pressure and a short-term correction, the uptrend in Bitcoin’s price remains unaffected by this downturn.
Currently, Bitcoin’s price has risen above $42,000 but struggles to maintain stability at this level. The market value of Bitcoin has also seen an increase, with trading volumes surging significantly in the last 24 hours. However, the price remains below the previous day’s high. TradingView’s moving averages data signals a ‘buy’ for Bitcoin, indicating an ongoing upward trend.