Analysis

Bitcoin’s 20% Dip Could Be Over Says Analyst: Where To From Here?

Bitcoin's price is recovering after a 20% dip. It is now back above $42,000 and eyeing a potential return to $48,000.

Jim Haastrup

Key Insights

  • Bitcoin's price is recovering after a 20% dip. It is now back above $42,000 and eyeing a potential return to $48,000.
  • Michaël van de Poppe sees a potential 16% rally to $48,000, despite a deeper correction to $30,000 still being possible.
  • Bitcoin is expected to range between $38,000 and $48,000 while altcoins shine over the coming months.

According to data from CoinMarketCap, BTC (and the rest of the market) is starting to recover.

Bitcoin dipped below $40,000 last week, prompting bearish BTC calls from analysts.

This week, however, BTC is back up above the $40,000 zone and has even retaken $42,000 as shown below:

Bitcoin's current price | Source: CoinMarketCap

At the time of writing, Bitcoin trades somewhere around $42,300, and things look really good for a possible retest or even a break above $45,000.

According to a top analyst, BTC is now eyeing a return to the $48,000 level, and we should go over what he means.

Bitcoin Shows Signs Of Strength

Things looked really bad when BTC hit the $37,000 zone last week, on 25 January.

However, the bullish sentiment among traders has returned, now that Bitcoin is beating even the stock market and the next halving is inching closer.

In a recent YouTube analysis video, Michaël van de Poppe, a prominent analyst, shared his bullish outlook on BTC.

In what turned out to be the most bullish bit of news in the crypto market last week, van de Poppe says that he believes that Bitcoin's correction is over and that the cryptocurrency is finally ready to retake $48,000.

Bitcoin's initial high

Recall that BTC declined from $48,969 on 11 January, after the bears suddenly took control and pulled the cryptocurrency down to the $38,000 zone.

The rally to $48,000 that van de Poppe predicts, might eventually lead Bitcoin up by an additional 16% from current price levels.

However, it isn't all bullish. Van de Poppe also warns that BTC may also enter a deeper correction to the $30,000 zone, where the whales will attempt to launch a bear trap and collect liquidity.

"Perhaps we're going to have one more run to $48,000 prior to it, then a final correction,"

Michaël van de Poppe

Altcoins To Shine In The Meantime

According to Van de Poppe, the altcoins are expected to shine as the months go by, and BTC ranges between $37,000 and $48,000.

On the issue of the ETFs, van de Poppe says that the true effect of these exchange-traded products on Bitcoin's price will only be fully visible in a matter of years, and not immediately, as more large investors enter the market.

BTC, according to van de Poppe, might go as high as $300,000 to $500,000 in the long term, as Bitcoin adoption hits the roof.

"In this period, Altcoins will have their time. The real impact on the ETF is going to come in the next few years, resulting in a price of Bitcoin going to $300,000-500,000,"

At the time of writing, BTC's dominance ranges between 51% and 49%, indicating that its dominance is being actively challenged by the altcoins.

How Far High Can We Go From Here (Price Analysis)

In the short term, Bitcoin has broken above its 20-day EMA, indicating that this week might be a good one for BTC.

Bitcoin's price chart

BTC is also aiming for a break above the 50 level on its RSI, indicating that the bulls are serious about taking control.

As it stands, van de Poppe might be right on his predictions for BTC, because there are no real hindrances to a possible rally to $49,000.

If BTC keeps from breaking below $38,000 and the bears remain strong at $38,000, we might see the cryptocurrency range between both price levels, until a break above or below one of them occurs.

BTC's price prediction

At the same time, the short term still presents a possible 16% rally on BTC, to the $48,969 zone.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.