Bitcoin Price Recovery and Altcoin Correction
With the recent recovery in the Bitcoin (BTC) price, the crypto market is yet to witness a full-fledged correction in terms of altcoin prices. Currently, BTC has experienced almost zero percentage change compared to a week ago. This could be attributed to the S&P 500 Index reaching its all-time high recently.
Has Bitcoin Bottomed Out?
Analyst CrediBULL Crypto mentioned on Twitter that he expected the Bitcoin price to bounce back closer to the $40,000 range after its dip to $38,000 last week. However, there is still a risk of another drop to around $37,000 but not below $36,000. It remains uncertain if the BTC price has already bottomed out in the recent wave, considering the approval of spot Bitcoin ETF filings by the SEC.
The analyst believes there might be significant selling pressure for BTC in the current zone due to profit-taking triggered by the bounce from recent lows. Nonetheless, there is little chance of lower lows below $40,000. If this scenario holds true, it suggests that the Bitcoin bottom is already in.
Impact of Bitcoin ETFs
The analyst further explained that despite outflows from the Grayscale Bitcoin ETF (GBTC), other ETFs have seen more inflows. On January 26, 2024, GBTC experienced a net outflow of $671 million, marking its largest single-day net outflow. The cumulative net outflows for GBTC have reached $5.46 billion, while it still holds $19.99 billion in net assets.
CoinGape previously reported that the bullish wave for the S&P 500 index may have a positive impact on the BTC price.
Hot Take: Bitcoin’s Recovery and Future Prospects
The recent recovery in the Bitcoin price suggests a potential bottoming out in the market. Despite the risk of another drop, there is little scope for lower lows below $40,000. The approval of spot Bitcoin ETF filings by the SEC may have a positive impact on BTC. However, profit-taking and selling pressure could be expected in the current zone.
While altcoins are yet to experience a full-fledged correction, it is important to closely monitor the BTC price and its future movements. The performance of Bitcoin ETFs, such as GBTC, also plays a significant role in shaping the overall market sentiment.
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