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According to Glassnode, Bitcoin may struggle to maintain its uptrend unless something creates more excitement among investors.
“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 he said in a report released Wednesday.
Bitcoin (BTC) is trading about 5% below the $117,000 level and is trading at $110,840 at press time, according to on CoinMarketCap.
“Historically, when price fails to hold this zone, it has often been preceded by extended mid- to long-term corrections,” Glassnode said, pointing to an increase in profit-taking among long-term holders recently, which may signal “demand exhaustion.”
Hyblock Capital CEO Shubh Varma told Cointelegraph that he expects a “relatively volatile month” with potential upside ranging from $116,000 to $120,000.
Lateral price action is a “likely outcome” after a crash
However, Varma said that while “consolidation is the likely outcome” for bitcoin after a significant market crash, several indicators still point to potential positive momentum for the cryptocurrency.
“ETF inflows remain fairly high and spot volume appears healthy,” Hyblock said. Before the broader crypto market crash on Friday, when bitcoin briefly fell to $102,000, U.S. spot bitcoin ETFs posted a nine-day inflow streak of $5.96 billion. according to to Farside data.
Another potential bullish catalyst is the prospect of continued rate cuts by the US Federal Reserve. A rate cut is typically seen as bullish on riskier assets like cryptocurrencies, as it forces investors away from traditional investments like bonds and term deposits, which become less attractive in a lower interest rate environment.
According to per CME’s FedWatch tool, markets are pricing in about a 95.7% chance of another rate cut at the Fed’s Oct. 29 meeting.
Other indicators point to a “still constructive” rest of the year
21Shares crypto research strategist Matt Mena said that with recent liquidations, looming policy easing and accelerating structural demand, the year-end setup appears to be “increasingly constructive for digital assets.”
Related: Nasdaq-listed Zeta Network raises $230 million in bitcoin-backed private sale
Mena said bitcoin is poised for a potential move toward $150,000 “as macroeconomic and institutional flows continue to align.”
Meanwhile, other analysts are predicting higher figures by the end of the year. BitMEX co-founder Arthur Hayes and Unchained director of market research Joe Burnett predict a price of $250,000 by the end of 2025.
Magazine: Sharplink exec shocked by level of BTC and ETH ETF hodling: Joseph Chalom
