Bitcoin price catalyst needed to avoid correction

     

Bitcoin price catalyst needed to avoid correction

Bitcoin may struggle to maintain its recent upward momentum unless a new Bitcoin price catalyst emerges to boost investor confidence. Analysts warn that without renewed excitement, the crypto market could face a period of heightened volatility and potential correction.

According to a new report from Glassnode, Bitcoin risks a further downturn unless prices move back above $117,100. “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 on Wednesday.

Bitcoin was trading around $110,840 at the time of writing, roughly 5% below the key $117,000 level, based on CoinMarketCap data. Glassnode added that when Bitcoin fails to hold this range, it often signals the start of longer-term corrections. The firm also noted rising profit-taking among long-term holders, suggesting that “demand exhaustion” may be developing.

Hyblock Capital CEO Shubh Varma told that October could be a “relatively volatile month” for Bitcoin, with possible price moves between $116,000 and $120,000.

Sideways Bitcoin movement expected after recent crash

Varma said that consolidation is the “most likely outcome” for Bitcoin following the recent market crash. But he added that several metrics still indicate healthy activity across the crypto ecosystem.

“ETF inflows remain quite high, and spot volume seems healthy,” Hyblock noted. Before Friday’s broader crypto sell-off, which briefly pushed Bitcoin down to $102,000, U.S.-based spot Bitcoin ETFs had seen nine straight days of inflows totaling $5.96 billion, according to Farside data.

A potential bullish Bitcoin price catalyst could come from further interest rate cuts by the U.S. Federal Reserve. Historically, lower rates tend to benefit risk assets like cryptocurrencies, as investors move away from bonds and term deposits.

According to the CME FedWatch Tool, markets now assign a 95.7% probability of another Fed rate cut on October 29.

Analysts see constructive outlook for Bitcoin into year-end

21Shares research strategist Matt Mena said that with recent liquidations, easing policies, and growing institutional demand, the setup for the rest of 2025 looks “increasingly constructive for digital assets.”

He believes Bitcoin could approach $150,000 by the end of the year as macroeconomic factors and institutional inflows align.

BitMEX co-founder Arthur Hayes and Unchained’s Joe Burnett share similar optimism, forecasting Bitcoin to reach as high as $250,000 by late 2025. Despite short-term uncertainty, analysts suggest that the longer-term trend may remain upward if new catalysts emerge to drive the next leg of growth.