Glassnode believes that Bitcoin will struggle to maintain its upward trend until something more exciting happens among investors.
“Without a renewed catalyst to lift prices back above $117.1k, the market risks deeper contraction toward the lower boundary of this range,” Glassnode said In a Wednesday report.
BitcoinBTC( ) was trading around 5% lower than the $117,000 mark, at $108,840 as of the publication date. according CoinMarketCap is a great place to start.
“Historically, when price fails to hold this zone, it has often preceded prolonged mid- to long-term corrections,” Glassnode noted that recent increases in profits taken by long-term shareholders may be an indication of a possible recession. “demand exhaustion.”
Shubh Varma, CEO of Hyblock Capital told Cointelegraph he expected a “relatively volatile month,” Potential upside ranges from $116,000 up to $120,000.
Price action that is a sideways movement “likely outcome” What to do after an accident
Varma argued that the fact is, Varma claimed “consolidation is the likely outcome” Bitcoin still has a positive potential momentum despite the recent significant crash in the market.
“ETFs inflows remain quite high, and spot volume seems healthy,” Hyblock added. Prior to the crypto-market crash that saw Bitcoin briefly drop to $102,000 on Friday, US-based Bitcoin spot ETFs recorded a streak of nine days inflows totaling $5.96billion inflows. according Farside data
A continuation of rate cuts by the US Federal Reserve could also be a bullish factor. In general, rate reductions are seen as bullish by investors for more risky assets like cryptocurrencies. This is because they encourage them to move away from conventional investments such as bonds and term deposit, which lose their appeal in an environment of low interest rates.
According According to CME FedWatch Tool the markets have priced in a 95.7% probability of another rate reduction at the Fed meeting on October 29.
There are other indicators that suggest “increasingly constructive” Rest of the Year
Matt Mena, 21Shares’ crypto analyst, said the year-end setup appears to be in place with recent liquidity, policy ease approaching and structural demand increasing. “increasingly constructive for digital assets.”
Related: Nasdaq-listed Zeta Network raises $230M in Bitcoin-backed private sale
Mena has said that Bitcoin may be preparing for a move towards $150,000. “as macro tailwinds and institutional flows continue to align.”
Other analysts predict higher prices by the end of this year. BitMEX co-founder Arthur Hayes Unchained’s market research director Joe Burnett predicts a $250,000 price by 2025.
Magazine: Sharplink exec shocked by level of BTC and ETH ETF hodling: Joseph Chalom
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
