Bitcoin may struggle to maintain its upward trend unless something stirs more excitement among investors, according to Glassnode.
“Without a renewed catalyst to lift prices above $117.1k, the market risks a deeper retreat towards the lower end of this range,” Glassnode said In a report published on Wednesday.
Bitcoin (BTC) is trading around 5% below the $117,000 level, trading at $110,840 at press time, according on CoinmarketCap.
“Historically, when the price fails to hold this zone, it often precedes a prolonged mid- to long-term correction,” said Glassnode, pointing to the increase in earnings among long-term holders in recent periods, which may signal “demand fatigue.”
Hyblock Capital CEO Shubh Varma told Cointelegraph that he expects a “pretty volatile month,” with a potential upside from $116,000 to $120,000.
Price action is “probable outcome” after the crash
However, Varma said that while “consolidation is the likely outcome” for Bitcoin following a significant market crash, some indicators still point to potential positive momentum for the cryptocurrency.
“ETF flows remain high, and volume in the area seems healthy,” Hyblock said. Ahead of Friday’s broader crypto market crash, which saw Bitcoin easily fall to $102,000, the US-based Bitcoin ETFS spot according to data remotely.
Another potential bullish catalyst is the prospect of continued rate cuts from the US Federal Reserve. Rate cuts are generally viewed as bullish for riskier assets, such as cryptocurrencies, as they encourage investors to move away from traditional investments such as bonds and term deposits, which are less attractive in a lower interest rate environment.
According to In the CME Fedwatch tool, markets are pricing in about a 95.7% chance of another rate cut at the Fed’s Oct. 29 meeting.
Other indicators suggest an “increasingly constructive” rest of the year
21Shares Crypto Research Strategist Matt Mena said that with the recent liquidations, the policy easing approach, and the structural acceleration accelerating, the year-end setup appears to be “increasingly constructive for digital assets.”
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Mena said Bitcoin is setting up for a potential move toward $150,000 “as macro tailwinds and institutional flows continue to align.”
Meanwhile, other analysts are predicting higher values by the end of the year. Bitmex co-founder Arthur Hayes and Unchained Market research director Joe Burnett predicts a price of $250,000 by the end of 2025.
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