Over the past day, bitcoin (btc) has made minor gains of around 0.7%, pushing its market price above the $42,000 mark. Investors in the world's leading cryptocurrency are likely encouraged by this recent price rally, following the 20% drop that followed the highly anticipated approval of bitcoin spot ETFs in early January.
Amidst much speculation about btc's next move, popular crypto analyst Michaël van de Poppe has published a prediction indicating that bitcoin's movement may be restricted for the next few months. However, he projects a massive price increase in the coming years.
Potential bitcoin consolidation paves way for altcoin boom
In a post on X on January 27, van de Poppe shared an intriguing forecast on bitcoin's price trajectory, as he predicted that the digital asset will soon enter a state of consolidation. According to the crypto analyst, bitcoin is likely to trade between $37,000 and $48,000 over the next few months. If this prediction comes true, btc could maintain its current upward trajectory and head towards the $48,000 zone before experiencing a major pullback.
bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin The dominance peaked a few months before the bitcoin halving.
History repeats itself.
It happened in 2016, 2020 and seems likely to happen in 2024 as well.
Once bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin hits bottom, I expect altcoins to start outperforming. pic.twitter.com/82VkuFr4Tq
—Michaël van de Poppe (@CryptoMichNL) January 20, 2024
Interestingly, van de Poppe also stated that a possible bitcoin consolidation would lead to altcoins posting significant market gains. in a previous prediction, The cryptocurrency enthusiast shared a similar belief and explained that btc is gradually approaching its peak market dominance with the bitcoin halving event just a few months away.
According to historical data from 2016 and 2020, when btc reaches its highest level of market dominance, altcoins embark on a bull run and even surpass the market leader. Michaël van de Poppe projects a similar event in the coming months, accompanied by a btc consolidation phase.
Analyst remains optimistic about ETF's long-term impact on btc
In the same X post on January 27, de Poppe also commented on the potential effects of the bitcoin spot ETF on the price of the asset. The analyst expressed a lot of confidence in the recently introduced exchange-traded products (ETPs), stating that they had the potential to push btc to a market price of $300,000 to $500,000 in the coming years.
His prediction comes as the bitcoin spot ETF market is currently witnessing a decline in outflows following a rather disruptive start that saw over $4.786 billion exit the new market in its first 10 days of trading.
On January 26 (trade 11), the btc Spot ETF recorded a new low outflow of $255.1 million, according to data from BitMEX Research. At the time of writing, total net flows into the ETF market amount to $759.4 million and bitcoin is trading at $42,088. If De Poppe's forecast proves true, investors in both markets could see massive gains in the coming years.
<img decoding="async" class="aligncenter size-large" src="https://technicalterrence.com/wp-content/uploads/2024/01/Analyst-Predicts-Bitcoin-Consolidation-Sees-Long-Term-Price-Target-of-500000" alt="bitcoin” width=”1479″ height=”893″ loading=”lazy”/>
btc trading at $42,088 on the daily chart | Source: BTCUSDT chart on Tradingview.com
Featured image from Business Today, chart from Tradingview
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