Bitcoin Needs a New Catalyst to Prevent a Deeper Correction, Analysts Warn

• Bitcoin is struggling to maintain its upward momentum without a new market catalyst, according to Glassnode.
• The cryptocurrency is trading around $110,840 — 5% below the key $117,000 resistance level.
• Analysts expect a volatile month ahead, with possible swings between $116,000 and $120,000.
• Strong ETF inflows and potential US Federal Reserve rate cuts could support a rebound.
• Experts see a “constructive” outlook toward year-end, with forecasts up to $250,000 by 2025.

Bitcoin’s price momentum may be fading as analysts warn the cryptocurrency needs a fresh catalyst to avoid a deeper market correction. According to on-chain analytics firm Glassnode, Bitcoin could face increased downside risk unless a new factor reignites investor enthusiasm. In its latest report, Glassnode cautioned, “Without a renewed catalyst to lift prices back above $117.1k, the market risks deeper contraction toward the lower boundary of this range.”

At the time of writing, Bitcoin is trading around $110,840 — approximately 5% below the critical $117,000 resistance level, based on data from CoinMarketCap. Over the past 30 days, Bitcoin has fallen 4.19%, signaling potential “demand exhaustion” as more long-term holders take profits. Historically, Glassnode notes that similar market setups have preceded mid- to long-term corrections.

Hyblock Capital CEO Shubh Varma told Cointelegraph that he expects a “relatively volatile month” ahead, with potential upside between $116,000 and $120,000. Despite recent turbulence, Varma emphasized that “consolidation is the likely outcome” for Bitcoin following the latest market crash. Still, several indicators — including strong ETF inflows and healthy spot trading volumes — suggest that market fundamentals remain supportive.

Before the latest downturn, US-based spot Bitcoin ETFs enjoyed a nine-day streak of inflows, totaling $5.96 billion, according to Farside data. These sustained inflows highlight ongoing institutional demand, which could provide a buffer against deeper declines.

Another bullish factor could come from the US Federal Reserve. Chair Jerome Powell’s hints at continued rate cuts have improved sentiment in risk markets. Historically, rate cuts benefit assets like Bitcoin and other cryptocurrencies, as investors shift away from low-yield traditional assets such as bonds. The CME FedWatch Tool currently shows a 95.7% probability of another rate cut at the Fed’s October 29 meeting — a scenario that could inject fresh liquidity into crypto markets.

21Shares crypto research strategist Matt Mena added that the setup for the rest of the year looks “increasingly constructive” for digital assets. He cited a combination of recent liquidations, approaching policy easing, and accelerating institutional demand as key tailwinds. “Bitcoin is setting up for a potential move toward $150,000 as macro tailwinds and institutional flows continue to align,” Mena noted.

Some analysts hold even more ambitious views. BitMEX co-founder Arthur Hayes and Unchained market research director Joe Burnett have both projected Bitcoin could reach $250,000 by the end of 2025, citing growing adoption, capital inflows from ETFs, and a maturing macroeconomic environment that favors digital assets.

While the near-term may bring volatility and consolidation, the broader trend among analysts remains cautiously optimistic. A new catalyst — whether regulatory clarity, major institutional entry, or global liquidity expansion — may be the spark Bitcoin needs to resume its next upward cycle.

Final Thought

Bitcoin’s current stagnation reflects a market searching for direction. Without a compelling new narrative or macroeconomic trigger, the asset risks entering a deeper correction phase. However, with strong ETF inflows, looming rate cuts, and sustained institutional interest, Bitcoin still has multiple paths to regain momentum — potentially setting the stage for another major rally heading into 2025.