Despite recent drops in price, bitcoin is still on track for further gains, according to BitQuant. Based on the technical analysis, the analyst predict that the world's most valuable currency will likely peak at $61,000, not $50,000, as some analysts have suggested.
bitcoin has room to grow, it can reach a maximum of $61,000
Sharing a screenshot of So far, prices are lower, trading below $45,000, and the bullish trend is valid despite the recent cooldown.
For this reason, BitQuant is confident that the recent drop was a temporary correction. Consequently, btc is likely to extend its gains, surpassing the immediate resistance levels of $45,000 and even $50,000 in the short to medium term.
Still, it should be noted that the 2X100 EMA is a technical indicator and can lag. Since the indicator averages past prices, it may not be accurate in showing current events and price expectations.
To prove it, in the last bear market, bitcoin prices fell below the 2X100 EMA as the coin fell to a low of $16,000 in November 2022. The community was not expecting this development, which took its followers by surprise.
So far, if we look at bitcoin price action on the daily chart, the path of least resistance is to the north. Although the approval of bitcoin spot ETFs by the United States Securities and Exchange Commission (SEC) was expected to lift prices immediately, btc unexpectedly plummeted.
The bears appear to be in control and have recently forced prices below a short-term support level. For this reason, the immediate trend aligns with the bearish engulfing bar on January 12. Projecting from this formation, btc may, if the bears take over, fall to $40,000 or lower.
Increased demand for btc
Even with this bearish outlook, the encouraging capital increase for approved spot bitcoin ETFs is bullish. Investor Fred Krueger grades that in the last five days alone, IBIT, the bitcoin spot ETF issued by BlackRock, the world's largest asset manager, received $1 billion.
Looking at the pace of inflows into not only IBIT but also other spot bitcoin ETFs, Krueger believes btc is undervalued at spot rates. The investor estimates that spot bitcoin ETF issuers now hold more than 650,000 btc, up from 619,000 btc on January 1. This suggests that institutional investors are increasingly bullish on bitcoin, and prices, although depressed, could recover in the future.
Featured image from Canva, TradingView chart
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
