Bitcoin (BTC) has made a strong comeback following a major price drop recently. The price of the largest cryptocurrency surged back above $42,000 on January 26th after falling below $39,000 at the beginning of the week. Experienced cryptocurrency analyst James Van Straten has made an optimistic short-term prediction for the price of the largest cryptocurrency.
“Bitcoin Could Soon Rise to $49,000”
Cryptocurrency analyst James Van Straten suggested that Bitcoin’s price could reach the $49,000 level for the second time following the approval of the first US spot ETF. Pointing out that the slight rotation of stablecoins has pushed Bitcoin above $42,000 on January 26th, Straten stated that he expects this stablecoin rotation to support the anticipated rally.
The analyst believes that the stablecoin rotation will drive BTC’s price above $49,000 in the coming days. He also added that inflows from spot Bitcoin ETFs will play a significant role in Bitcoin’s recent recovery. According to the crypto data platform CryptoQuant, the Bitcoin Stablecoin Supply Ratio (SSR) dropped from 11.28 the previous day to 11.22 on January 25th, which was a trigger for the rally due to potential buying pressure.
However, the Bitcoin SSR jumped to 11.70 on January 26th, indicating that selling pressure could lead to a possible short-term correction. On the other hand, the recent increase in Bitcoin’s price is not currently affected by the downtrend.
Current Bitcoin Price Situation
BTC, which rose above the $42,000 level on January 26th, has not been able to maintain stability above this level. The largest cryptocurrency is currently trading at a distance from this level, with its daily gain dropping from 5% to below 3%. At the time of writing this article, Bitcoin is trading at $41,747, up 2.42%.
Moreover, Bitcoin has a market value of $818.73 billion, up 2.39%, which is extremely high. Additionally, the trading volume for Bitcoin in the last 24 hours has reached $23 billion, an increase of 14.74%. However, the price of the largest cryptocurrency is still well below the previous day’s high of $42,209.
On the other hand, the moving averages data provided by TradingView is currently giving a ‘buy’ signal for Bitcoin. The data shows that BTC’s price is trading above its 10-day and 50-day EMAs, at $41,745 and $41,262 respectively, indicating an upward trend.
