Glassnode points out that unless there are factors to stimulate more interest from investors, BTC may struggle to maintain its upward trend.
"Without new catalysts to push the price back above $117,100, the market may face the risk of a deeper contraction towards the lower end of that range," Glassnode stated in a report released on Wednesday.
According to data from CoinMarketCap, BTC is currently trading about 5% lower than the $117,000 level, with a trading price of $110,840 at the time of writing.
Glassnode noted, "Historically, when the price fails to hold in this range, it usually signals an extended pullback in the medium to long term." The agency also emphasized that the recent increase in profit-taking by long-term holders may indicate "demand exhaustion."
Shubh Varma, CEO of Hyblock Capital, stated in an interview with Cointelegraph that he expects a "relatively volatile month" ahead, with potential upside ranging between $116,000 and $120,000.
However, Varma mentioned that while BTC is likely to "consolidate" after a significant market crash, several indicators still point to potential positive momentum for the cryptocurrency.
"ETF inflows remain quite high, and spot trading volume looks healthy," Hyblock noted. Before the broader cryptocurrency market crash last Friday (when BTC briefly fell to $102,000), the U.S. spot BTC ETF had recorded nine consecutive days of inflows, with a total inflow amounting to $5.96 billion, according to Farside data.
Another potential bullish catalyst is the prospect of the Federal Reserve possibly continuing to cut interest rates. Rate cuts are generally seen as favorable for risk assets like cryptocurrencies, as they encourage investors to shift from traditional investments (such as bonds and fixed deposits) to other assets, which become less attractive in a lower interest rate environment.
According to the CME FedWatch Tool, the market expects about a 95.7% chance of the Federal Reserve cutting rates again at its meeting on October 29.
Matt Mena, a crypto research strategist at 21Shares, stated, "With recent liquidations, the approach of policy easing, and accelerating structural demand, the market landscape for digital assets is becoming increasingly constructive as we approach the end of the year."
Mena pointed out that as macroeconomic favorable factors and institutional inflows continue to align, BTC is preparing for a potential move towards $150,000.
Meanwhile, other analysts predict higher prices by the end of the year. BitMEX co-founder Arthur Hayes and Unchained market research director Joe Burnett forecast that prices will reach $250,000 by the end of 2025.
Related: Whether Bitcoin (BTC) can continue its "Uptober" rally depends on the probability of Federal Reserve rate cuts and the performance of Nasdaq and tech stocks.
Original: “Analysts say Bitcoin (BTC) needs new catalysts to avoid a 'deeper pullback'”
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