Bitcoin Requires New Momentum to Avert Significant Drop, Analysts Warn

Bitcoin’s ability to maintain its rally might depend on new triggers that inspire investor enthusiasm, as some analysts suggest the coming month could be turbulent.

According to Glassnode, Bitcoin currently trades roughly 5% below $117,000, priced at about $110,840. They report, “Without a renewed catalyst to lift prices back above $117.1k, the market risks deeper contraction toward the lower boundary of this range.”

Bitcoin Decline Bitcoin has declined by 4.19% over the past 30 days. Source: CoinMarketCap

Glassnode adds that a failure to hold this price zone could lead to extended corrections, reflecting increased profit-taking among long-term holders that may indicate “demand exhaustion.”

Hyblock Capital’s CEO, Shubh Varma, anticipates a volatile month ahead, predicting fluctuations between $116,000 and $120,000.

Likely Outcomes After a Decline

Varma also opines that a consolidation phase is expected for Bitcoin post-market crash, yet positive momentum indicators could still be on the horizon.

Inflows into Bitcoin ETFs have remained strong, with $5.96 billion recorded recently just before a market drop that saw Bitcoin touch $102,000.

Additionally, ongoing expectations of interest rate cuts from the US Federal Reserve could act as a bullish driver for cryptocurrencies, as investors may pivot from traditional low-yield investments.

The CME FedWatch Tool indicates a 95.7% likelihood of an interest rate cut at the Fed’s upcoming Oct. 29 meeting.

Positive Trends for the Remainder of the Year

Matt Mena from 21Shares points out that with recent liquidations and anticipated policy easing, conditions appear beneficial for digital assets heading toward year-end.

Mena suggests Bitcoin might aim for $150,000 as macroeconomic factors and institutional interest converge. Meanwhile, some experts are projecting a staggering price of $250,000 by the end of 2025, including BitMEX co-founder Arthur Hayes and Unchained’s market research director Joe Burnett.