Bitcoin Stalls at $84K: Analyst Predicts 2025 Recovery Mimicking Last Year
Bitcoin’s price stabilizes at around $84,596, 22% below its peak. Analyst Crypto Dan notes parallels to previous correction cycles, indicating that speculative activity has decreased, which may foreshadow a recovery if macroeconomic situations improve. CryptoQuant contributor Mignolet highlights recent shifts in mid-term holder behaviour, suggesting upcoming price volatility, urging traders to be alert.
Currently, Bitcoin’s price hovers around $84,596, reflecting a minor decline of 0.1% over the last 24 hours. This positioning places it approximately 22% lower than its all-time high of over $109,000 earlier this year. The asset has shown limited upward movement and remains in a range-bound state due to ongoing macroeconomic uncertainties, indicating cautious investor sentiment.
In a recent QuickTake post, analyst Crypto Dan from CryptoQuant draws parallels between Bitcoin’s current market conditions and the corrections seen in 2024. He examined short-term holder activities, suggesting that the recent downturn may emulate previous correction patterns. Dan identified a key metric associated with speculative enthusiasm, revealing that a rise in Bitcoin’s supply held for one week to one month typically precedes market corrections.
Dan observed that the percentage of short-term holdings has reached a historical level, previously correlating with market bottoms. This was illustrated on a chart he provided, marking a region aligned with the 2024 correction low. He believes that as speculative excesses have diminished, a recovery in Bitcoin’s price may occur, contingent on improving macroeconomic factors. However, he warns that further consolidation may still be required before any significant trend change.
In a related analysis, CryptoQuant contributor Mignolet highlighted movements among Bitcoin’s mid-term holders, noting approximately 170,000 BTC transferring from the 3-6 month holding cohort. This shift suggests potential volatility, as historical data indicates that significant movements from these holders often precede noteworthy price fluctuations. Mignolet’s observations were visualized with charts indicating previous price rallies and declines, underscoring the need for traders to remain vigilant for possible imminent market movements.
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