Bitcoin may struggle to maintain its upward trend unless something sparks more excitement among investors, according to Glassnode.
“Without a renewed catalyst to lift prices back above $117.1K, the market risks a deeper contraction towards the lower end of this range,” Glassnode said. He said In a report published on Wednesday.
Bitcoin (BTC) is trading about 5% below the $117,000 level, trading at $110,840 at press time, According to To Coin Market Cap.
“Historically, when price fails to hold this zone, it is often preceded by medium- to long-term corrections,” Glassnode said, noting increased profit taking among long-term holders recently, which could indicate “demand exhaustion.”
Hyblock Capital CEO Shubh Varma told Cointelegraph that he expects a “relatively volatile month,” with a potential rally ranging from $116,000 to $120,000.
Sideways price action is the “possible outcome” after a breakout
However, Varma said that although “a consolidation is the likely outcome” for Bitcoin after a major market crash, many indicators still point to potential positive momentum for the cryptocurrency.
“ETF inflows are still very high, and spot volume looks healthy,” Hyblock said. Before the broader cryptocurrency market crash on Friday, which saw Bitcoin briefly fall to $102,000, U.S.-traded Bitcoin ETFs recorded a 9-day streak of $5.96 billion in inflows, According to To Farside data.
Another potential bullish catalyst is the possibility of continued interest rate cuts by the US Federal Reserve. Interest rate cuts are usually seen as bullish for riskier assets, such as cryptocurrencies, because they push investors away from traditional investments such as bonds and term deposits, which become less attractive in a low interest rate environment.
According to According to the CME FedWatch tool, markets expect a roughly 95.7% chance of another rate cut at the Fed’s October 29 meeting.
Other indicators point to an “increasingly constructive” situation over the rest of the year
With recent liquidations, approaching policy easing, and accelerating structural demand, the setup to the end of the year looks “increasingly constructive for digital assets,” said Matt Mina, crypto research strategist at 21Shares.
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Bitcoin is preparing for a potential move toward $150,000 “as macro tailwinds and institutional flows continue to align,” Mina said.
Meanwhile, other analysts expect higher values by the end of the year. BitMEX co-founder Arthur Hayes and Unchained market research director Joe Burnett expect a price of $250,000 by the end of 2025.
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