Bitcoin may face challenges in maintaining its upward trajectory unless an event reignites investor enthusiasm, as noted by Glassnode.
“In the absence of a new catalyst to push prices back above $117.1k, the market risks deeper contraction toward the lower end of this range,” Glassnode mentioned in a report released on Wednesday.
Bitcoin (BTC) is currently trading around 5% below the $117,000 mark, priced at $110,840 as of the time of this publication, according to CoinMarketCap.
“Historically, when the price fails to maintain this zone, it often precedes extended mid- to long-term corrections,” Glassnode indicated, highlighting a rise in profit-taking among long-term holders, which may suggest “demand exhaustion.”
Hyblock Capital CEO Shubh Varma told Cointelegraph that he anticipates a “relatively volatile month,” with potential gains ranging from $116,000 to $120,000.
Sideways price action is the “likely outcome” following a crash
However, Varma remarked that while “consolidation is the likely outcome” for Bitcoin after a major market decline, several indicators still hint at potential positive momentum for the cryptocurrency.
“ETFs inflows remain notably high, and spot volume appears robust,” Hyblock noted. Before the recent wider crypto market downturn on Friday, which saw Bitcoin dip to $102,000, US-based spot Bitcoin ETFs had recorded a nine-day inflow streak totaling $5.96 billion, according to Farside data.
Another potential bullish driver is the possibility of continued rate cuts from the US Federal Reserve. Such cuts are usually seen as beneficial for riskier assets like cryptocurrencies, as they lead investors to turn away from traditional investments like bonds and term deposits, which lose attractiveness in a low-interest-rate climate.
According to the CME FedWatch Tool, markets are anticipating about a 95.7% likelihood of another rate cut during the Fed’s meeting on Oct. 29.
Other indicators suggest a “more constructive” remainder of the year
21Shares crypto research strategist Matt Mena indicated that with the recent liquidations, approaching policy easing, and accelerating structural demand, the outlook toward year-end appears “increasingly constructive for digital assets.”
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Mena stated that Bitcoin is poised for a potential move toward $150,000 “as macro tailwinds and institutional flows continue to align.”
In the meantime, other analysts predict higher values by year-end. BitMEX co-founder Arthur Hayes and Unchained market research director Joe Burnett forecast a price of $250,000 by the close of 2025.
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