Analyst: Until Bitcoin Retests $61k, The BTC Top Is Not In

Despite recent dips in price, Bitcoin is still on track for further gains, according to BitQuant. Based on technical analysis, the analyst predicts that the world’s most valuable coin will likely top out at $61,000, not $50,000, as some analysts have suggested.

Bitcoin Has Room For Growth, May Peak At $61,000

Sharing a screen grab on X, the analyst argues that based on Bitcoin’s history, prices tend to peak once it retests the 2X100 exponential moving average (EMA). So far, prices are lower, trading below $45,000, and the uptrend is valid despite the recent cool-off. 

For this reason, BitQuant is confident that the recent drop was a temporary correction. Accordingly, BTC will likely extend gains, breaking above immediate resistance levels at $45,000 and even $50,000 in the short to medium term.

Still, it should be noted that the 2X100 EMA is a technical indicator and may lag. Since the indicator averages past prices, it might not be accurate, showing current events and expectations of prices.

To demonstrate, in the last bear market, Bitcoin prices dipped below the 2X100 EMA as the coin tanked to as low as $16,000 by November 2022. This development wasn’t expected by the community, taking adherents by surprise.

So far, looking at the Bitcoin price action in the daily chart, the path of least resistance is northwards. Though the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) was expected to lift prices immediately, BTC unexpectedly crashed. 

Bears appear in control, recently forcing prices below a short-term support level. For this reason, the immediate trend aligns with the January 12 bear engulfing bar. Making projections from this formation, BTC may, if bears take charge, drop to $40,000 or lower.

BTC Demand Surging

Even with this bearish outlook, the encouraging surge of capital to approved spot Bitcoin ETFs is bullish. Investor Fred Krueger notes that in the last five days alone, IBIT, the spot Bitcoin ETF issued by BlackRock, the world’s largest asset manager, received $1 billion. 

Looking at the pace of inflows, not only IBIT but other spot Bitcoin ETFs, Krueger believes BTC is undervalued at spot rates. The investor estimates that spot Bitcoin ETF issuers now hold over 650,000 BTC, up from 619,000 BTC as of January 1. This suggests that institutional investors are increasingly bullish on Bitcoin, and prices, though depressed, might recover going forward.