According to Glassnode, Bitcoin may face challenges in maintaining its upward trajectory unless a new wave of investor enthusiasm emerges.
“Unless a fresh catalyst propels prices back above $117.1k, the market risks deeper adjustments toward the lower end of this range,” Glassnode noted in a Wednesday report.
Currently, Bitcoin (BTC) is trading around 5% below the $117,000 mark, with a price of $110,840, as reported by CoinMarketCap.
“Historically, when prices fail to maintain this zone, it often leads to extended mid- to long-term corrections,” Glassnode pointed out, highlighting an uptick in profit-taking among long-term holders, which could indicate “demand exhaustion.”
Shubh Varma, CEO of Hyblock Capital, mentioned to Cointelegraph that a “relatively volatile month” is expected, with potential peaks between $116,000 and $120,000.
Sideways price movement is a “likely outcome” post-crash
Varma also stated that while “consolidation is the expected result” for Bitcoin after a significant market downturn, some indicators suggest possible positive momentum for the asset.
“ETF inflows remain robust, and spot volume appears healthy,” Hyblock noted. Before the broader crypto market collapse on Friday, which saw Bitcoin dip to $102,000, US-based spot Bitcoin ETFs experienced a nine-day inflow streak totaling $5.96 billion, according to Farside data.
Another potential bullish driver could be the expected continuation of rate cuts by the US Federal Reserve. Such cuts are generally perceived as positive for riskier assets like cryptocurrencies, as they encourage investors to move away from traditional options like bonds and term deposits, which become less appealing in a low-rate setting.
As per the CME FedWatch Tool, markets are anticipating about a 95.7% probability of another rate cut at the Fed’s meeting on Oct. 29.
Other indicators hint at a “more positive” remainder of the year
According to 21Shares crypto research strategist Matt Mena, the recent liquidations, anticipated policy easing, and rising structural demand suggest the setup heading into year-end appears “increasingly favorable for digital assets.”
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Mena indicated that Bitcoin is gearing up for a possible approach toward $150,000 “as macro tailwinds and institutional investments continue to align.”
Meanwhile, other analysts are projecting higher valuations by year-end. BitMEX co-founder Arthur Hayes and Unchained market research director Joe Burnett foresee a price of $250,000 by the close of 2025.
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