Analyst Predicts Bitcoin Consolidation, Eyes Long-Term Price Target Of $500,000
In the last day, Bitcoin (BTC) has notched up minor gains to the tune of 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 gain, following the 20% price decline that trailed the highly anticipated approval of the Bitcoin spot ETFs earlier in January.
Amidst many speculations on BTC’s next movement, popular crypto analyst Michaël van de Poppe has released a prediction that indicates Bitcoin’s movement may be restricted for the coming months. Albeit, he projects a massive price surge in future years.
Bitcoin Potential Consolidation Paves The 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 the digital asset to soon enter a consolidation state. According to the crypto analyst, Bitcoin is likely to trade between $37,000 – $48,000 for the next few months. If this prediction holds true, BTC could maintain its current upward trajectory and head for the $48,000 zone before experiencing any major pullback.
#Bitcoin dominance peaking a few months prior to the Bitcoin halving.
History repeating itself.
It has happened in 2016, 2020 and seems likely to happen in 2024 as well.
Once #Bitcoin bottoms out, 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 recording significant market gains. In a previous prediction, the crypto enthusiast shared a similar belief explaining that BTC is gradually approaching its peak market dominance with the Bitcoin halving event just a few months away.
Based on historical data from 2016 and 2020, when BTC attains its highest level of market dominance, the altcoins embark on a bullish run and even outperform the market leader. Michaël van de Poppe is projecting a similar occurrence in the coming months, accompanied by a BTC consolidation phase.
Analyst Remains Optimistic About Long-Term ETF Impact On BTC
In the same post on X on January 27, de Poppe also commented on the potential effects of the Bitcoin spot ETF on the asset’s price. The analyst expressed much confidence in the newly introduced exchange-traded products (ETP) stating they had the potential to spur 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 perturbing start which saw over $4.786 billion exit the novel market within its first 10 trading days.
On January 26 (trading 11), the BTC spot ETF recorded a new minimum outflow of $255.1 million, according to data from BitMEX Research. At the time of writing, total net flows in the ETF market stand at $759.4 million with Bitcoin trading at $42,088. If de Poppe’s forecast proves true, investors in both markets could record massive profits in the coming years.
BTC trading at $42,088 on the daily chart | Source: BTCUSDT chart on Tradingview.com
Featured image from Business Today, chart from Tradingview
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
