Bitcoin Market Analysis: Potential for Upward Movement by 2025

CryptoQuant analysts predict Bitcoin is nearing the end of its correction phase, with potential positive momentum in 2025. Indicators demonstrate market overheating may have subsided, while the recent golden cross signal hints at bullish trends. However, analysts advise caution due to declining futures sentiment and possible selling pressure from China.

According to a recent post by CryptoQuant, analyst predictions indicate that Bitcoin (BTC) is nearing the end of its price correction phase within its current market cycle. Despite ongoing macroeconomic uncertainties, optimism is building for a significant upward movement in 2025.

CryptoQuant contributor Crypto Dan highlighted the similarities between BTC’s present correction phase and previous ones observed in 2024. He noted that the amount of bitcoin held for under a month can indicate the extent of market speculation, with more speculative markets exhibiting sharper price pullbacks compared to traditional assets like gold.

A shared chart illustrated three primary phases of the crypto market: a market rally (red arrow), an increase in BTC holdings under one month (green pattern), and a subsequent correction (yellow arrow). This pattern has appeared twice in the ongoing bull market, both times at periods of increased short-term holdings, indicating significant market overheating.

Currently, the ratio of short-term BTC holdings has reached a cycle low, as shown in the yellow-boxed area of the chart, akin to the 2024 market cycle bottom. If historical patterns hold, this suggests that BTC’s price may be ready to rebound. Crypto Dan elaborated that, while challenges persist, a positive trajectory is likely by 2025.

Furthermore, analyst Titan of Crypto noted a potential shift in momentum, indicating BTC recently created a golden cross on its daily chart. This bullish signal occurs when the 50-day moving average surpasses the 200-day average, often suggesting the start of a long-term upward trend and viewed as a buy signal among traders.

However, caution exists as well. Analyst abramchart pointed out that the BTC futures sentiment index has been declining since February, reflecting a more cautious stance among derivative traders. Compounding this, reports indicate that China may plan to sell a substantial amount of confiscated BTC, potentially increasing selling pressure and hindering short-term price recovery. Currently, BTC is priced at $84,766, down 0.1% over the last 24 hours.