After a significant price drop, Bitcoin has made a strong comeback, surpassing the $42,000 mark on January 26, following a dip below $39,000 earlier in the week. Crypto analyst James Van Straten has expressed optimism for the short-term future of the leading cryptocurrency’s price.
Bitcoin’s Potential Climb to $49,000
James Van Straten suggests that Bitcoin could reach $49,000 for the second time following the approval of the U.S.’s first spot ETF. He credits a mild rotation of stablecoins for the recent rally that pushed Bitcoin above $42,000 on January 26 and believes this rotation will continue to propel the price upward.
The analyst also points out that inflows from spot Bitcoin ETFs will play a significant role in Bitcoin’s recovery. According to CryptoQuant, the Bitcoin Stablecoin Supply Ratio (SSR) indicated a potential buying pressure on January 25, which could have triggered the rise.
Current Bitcoin Price Status
Despite crossing the $42,000 threshold on January 26, Bitcoin has not managed to maintain this level, with its daily gains falling below 3%. At the time of writing, Bitcoin is trading at $41,747, reflecting a 2.42% increase, with a market capitalization of $818.73 billion and a 14.74% increase in the 24-hour trading volume to $23 billion.
However, the price of Bitcoin is still well below its previous day’s high of $42,209. Meanwhile, TradingView’s moving averages data currently indicates a ‘buy’ signal for Bitcoin, as its price is trading above its 10-day and 50-day EMAs, suggesting an upward trend.