Bitcoin may struggle to sustain its upward trend unless something triggers more excitement among investors, according to Glassnode.
โWithout a renewed catalyst to lift prices back above $117.1k, the market risks deeper contraction toward the lower boundary of this range,โ Glassnode said in a report published on Wednesday.ย
Bitcoin (BTC) is trading at around 5% below the $117,000 level, trading at $110,840 at the time of publication, according to CoinMarketCap.
โHistorically, when price fails to hold this zone, it has often preceded prolonged mid- to long-term corrections,โ Glassnode said, pointing out the increase in profit-taking among long-term holders in recent times, which may signal โdemand exhaustion.โ
Hyblock Capital CEO Shubh Varma told Cointelegraph that he expects a โrelatively volatile month,โ with potential upside ranging from $116,000 to $120,000.ย
Sideways price action is โlikely outcomeโ after a crash
However, Varma said that while โconsolidation is the likely outcomeโ for Bitcoin following a significant market crash, several indicators still point to potential positive momentum for the cryptocurrency.
โETFs inflows remain quite high, and spot volume seems healthy,โ Hyblock said. Before the wider crypto market crash on Friday, which saw Bitcoin briefly fall to $102,000, US-based spot Bitcoin ETFs had recorded a nine-day inflow streak, amounting to $5.96 billion in inflows, according to Farside data.
Another potential bullish catalyst is the prospect of continued rate cuts from the US Federal Reserve. Rate cuts are typically viewed as bullish for riskier assets, such as cryptocurrencies, as they prompt investors to shift away from traditional investments like bonds and term deposits, which become less attractive in a lower interest rate environment.
According to the CME FedWatch Tool, markets are pricing in about a 95.7% chance of another rate cut at the Fedโs Oct. 29 meeting.
Other indicators suggest โincreasingly constructiveโ rest of the year
21Shares crypto research strategist Matt Mena said that with the recent liquidations, policy easing approaching, and structural demand accelerating, the setup into year-end appears โincreasingly constructive for digital assets.โ
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Mena said Bitcoin is setting up for a potential move toward $150,000 โas macro tailwinds and institutional flows continue to align.โ
Meanwhile, other analysts are predicting higher values by year-end. BitMEX co-founder Arthur Hayes and Unchained market research director Joe Burnett are forecasting a price of $250,000 by the end of 2025.
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