Despite Bitcoin’s ongoing slump, analysts remain optimistic in the long-term, predicting a prolonged consolidation in the short-term.
Bitcoin BTC $84 108 24h volatility: 0.3% Market cap: $1.67 T Vol. 24h: $17.88 B is currently trading around $84,000, around 23% below its all-time high of $109,114, achieved in January 2025. This correction has fueled speculation that the crypto market may be slipping into a bear phase. However, seasoned analysts have pointed on-chain metrics that suggest otherwise.
The bearish sentiment gained traction recently when CryptoQuant CEO Ki Young Ju claimed on X that the Bitcoin bull cycle might be over. He predicted 6-12 months of sideways or bearish price action, citing a lack of fresh liquidity and increased whale selling.
However, in the latest X post, Ju clarified that he did not foresee a major crash but rather an extended consolidation period.
According to CryptoQuant founder, new liquidity channels and reduced contagion risks make a -70% drop unlikely. Instead, he expects a wide-range sideways movement, presenting both shorting and buying opportunities.
Ju also argued that many retail investors are investing Bitcoin ETFs, which doesn’t reflect directly on on-chain metrics.
Around 80% of spot ETF inflows are reportedly retail-driven. Ju suggested that once macroeconomic conditions improve, such as interest rate cuts, fresh liquidity could trigger a new buying wave.
Bitcoin Severely Undervalued
Popular crypto analyst Merlijn holds an even more bullish outlook. He recently stated that Bitcoin is significantly undervalued.
According to him, based on previous cycles, BTC should be trading around $250,000 at this stage. This implies that the largest price surge could still be ahead.
In a separate X post, Merlijn noted that BTC recently bounced off the 50-week Exponential Moving Average with a perfect bullish cross on the Stochastic RSI. Historically, such patterns led to parabolic price moves.
On the daily BTC price chart, Bitcoin is trading near the middle Bollinger Band (20-day SMA) around $85,061, suggesting a phase of consolidation. The upper and lower bands are slightly expanding, which could result in an increased volatility.
A break above $92,155 (upper band) could signal a bullish breakout.
Meanwhile, the 14-day RSI is at 45.6, indicating neutral momentum but nearing oversold territory. A further drop in RSI could signal a buying opportunity.
Despite the long-term bullish optimism, analysts predict potential pullback in the short-term. Technical analyst Aksel Kibar recently warned of a BTC price drop to $73,700, a key support level.
He suggested that Bitcoin’s reaction at this level will be crucial in determining its trajectory for the next few months.
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