Bitcoin (BTC) continues to rise in the short term, recently clearing the $42,000 resistance. This comes as Bitcoin attempts to reverse the recent decline that emerged following the approval of spot exchange-traded funds (ETFs).
It is worth noting that despite the continued bullish sentiment surrounding Bitcoin, some in the market continue to expect ETFs to have a positive impact on Bitcoin assets over the long term.
In particular, Michael Poppe, a virtual currency trading expert, post On January 27th, X (formerly Twitter) focused on the long-term impact of Bitcoin ETFs, predicting that the impact will be significant over the next few years. If it becomes widely adopted, the price of Bitcoin could reach as high as $500,000, according to Poppe.
“The real impact on ETFs will be felt within the next few years, resulting in a Bitcoin price of $300,000 to $500,000,” he said.
Bitcoin short-term outlook
At the same time, after Bitcoin soared above the $42,000 level, Poppe predicted that the market should not expect further movement in the coming months, with the cryptocurrency expected to rise from $37,000 in the coming months. He indicated that the price is likely to consolidate in the $48,000 range.
In contrast to Poppe’s long-term outlook, cryptocurrency analysts say intense trading,in TradingView In a post on January 27th, we provided an immediate outlook for BTC following the short-term rally.
The expert remained cautious about short-term bullish trends and emphasized the importance of the resistance level at $42,200. In his opinion, a clear rejection at this point could signal continued bearish dominance in the short term.
On the contrary, a successful breakthrough could pave the way for further upside and reach levels above around $43,500. Additionally, he suggested that ETFs are likely to have a long-term impact on Bitcoin’s valuation.
Bitcoin rises as ETF outflows slow
It is worth noting that after the ETF approval, Bitcoin fell due to outflows from the Grayscale Bitcoin Trust (GBTC). Bitcoin’s recent rally coincides with a slowdown in profit-taking from GBTC.
Overall, other funds with increased inflows are withdrawing Bitcoin from the market, which could contribute to the price increase. While most ETFs are seeing positive inflows, BlackRock’s (NYSE:BLK) iShares Bitcoin Trust (IBIT) passed the $2 billion milestone in total inflows as of January 26th. That’s worth noting.
Bitcoin price analysis
At the time of writing, Bitcoin was trading at $42,491, up almost 2% on the daily chart. On the weekly chart, BTC is up 1.8%. The current price level is the highest in five days since falling to $38,600 on January 23rd.
In the current bullish mood, Bitcoin technical analysis is dominated by positive indicators.Daily gauge summary taken from TradingView recommends “buy” with a rating of 13. The same sentiment is replicated with the oscillator at 2, but the moving average is at 11, suggesting a “strong buy.”
In conclusion, although Bitcoin has recorded short-term gains, most analysts remain cautious, noting that the price could go either way as long as the asset remains below $48,000. Some people do.
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