(MENAFN- Crypto Breaking) Bitcoin faces a critical juncture, with expert analysis suggesting that continued upward momentum hinges on renewed investor enthusiasm. While some market indicators hint at potential growth, caution remains as the cryptocurrency trades below key resistance levels amid signs of profit-taking and consolidation. Here's a closer look at the current state of the crypto markets and what may lie ahead.

• Bitcoin trades around 5% below $117,000, with on-chain data warning of possible deeper corrections without a new catalyst.
• Investor profit-taking and historical price patterns suggest the potential for prolonged mid- to long-term declines if support levels fail.
• Despite recent volatility, inflows into US-based Bitcoin ETFs and robust spot trading volumes indicate ongoing institutional interest.
• Market sentiment remains cautious but optimistic, with expectations of sideways trading and potential upside driven by macroeconomic factors.
• Analysts forecast Bitcoin reaching $150,000 by year-end, supported by policy easing and institutional flows, with some predicting even higher levels.

Bitcoin may struggle to sustain its recent gains unless new factors ignite investor enthusiasm, warns Glassnode in a fresh market report. The on-chain analytics firm highlights that Bitcoin's price needs to climb back above $117,100 to avoid risking additional downturns. Currently trading at around $110,840, Bitcoin has declined approximately 4.19% over the last month, reflecting the ongoing volatility in crypto markets.

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

Technical analysis shows that if Bitcoin cannot hold this crucial level, it may trigger lengthy corrections, reminiscent of past price behavior. Long-term holders have recently been profit-taking, which could signal demand exhaustion and increased selling pressure, compounding downward risks, according to Glassnode.

Hyblock Capital CEO Shubh Varma anticipates a volatile month ahead, with Bitcoin potentially moving between $116,000 and $120,000. Despite the recent market turbulence, some bullish signals persist, including high ETF inflows and sustained spot trading volumes. Data from Farside indicates that U.S.-based Bitcoin ETFs experienced nine consecutive days of inflows totaling nearly $6 billion before last week's sharp dip.

Another factor supporting bullish sentiment is the possibility of continued rate cuts by the Federal Reserve. Markets currently predict a roughly 95.7% chance of another rate cut at the Fed's upcoming meeting, which historically bolsters risk assets like cryptocurrencies by prompting investors to shift away from traditional fixed-income investments.

Other indicators suggest“increasingly constructive” rest of the year

According to 21Shares' crypto research strategist Matt Mena, recent liquidations and anticipated monetary easing promote a more favorable environment for digital assets heading into the final months of the year. Mena highlighted that structural demand for cryptocurrencies is accelerating, positioning Bitcoin for a potential surge to $150,000 as macroeconomic tailwinds and institutional flows align.

Meanwhile, some industry insiders predict even more optimistic scenarios. Notably, experts like BitMEX co-founder Arthur Hayes and Unchained's Joe Burnett forecast Bitcoin could reach $250,000 by the end of 2025, driven by institutional adoption and ongoing market trends.

Crypto Investing Risk Warning
Crypto assets are highly volatile. Your capital is at risk. Don't invest unless you're prepared to lose all the money you invest.

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