Bitcoin’s Roller Coaster: What Lies Ahead?

Bitcoin has recently catapulted to unprecedented heights, and now, in accordance with Michael Harvey, Galaxy Digital’s head of franchise trading, the cryptocurrency might take a breather. However, the opportunity of one other upward surge before the tip of July stays open.

Consolidation on the Horizon?

Harvey shared with Cointelegraph that he anticipates Bitcoin to stabilize around its current levels attributable to the recent significant rally. “Given the large rally and new ATH, consolidation at current prices is my base scenario,” he explained.

Looking Ahead: A Bullish 2025?

As we approach the tip of the yr, Harvey has high hopes for Bitcoin’s trajectory. “I foresee BTC trending higher into year-end, although it makes sense for it to pause and catch its breath now,” he noted. He elaborated on the best-case scenario, suggesting a gradual rise in prices by month’s end.

For Bitcoin to interrupt latest records this month, several aspects would want to align: robust inflows into U.S.-based spot Bitcoin ETFs, consistent buying by Bitcoin treasury firms, and a major boost in retail demand.

While spot Bitcoin ETFs have been attracting notable inflows and interest from Bitcoin treasury firms is on the rise, there’s still a debate on whether the retail wave has truly arrived. A promising sign of retail interest is Coinbase’s leap to No. 137 on the U.S. Apple App Store. However, the shortage of increased “Bitcoin” searches on Google suggests broader retail interest should still be warming up.

Bitcoin is currently trading at $118,098, in accordance with Nansen data, after reaching a brand new all-time high of $122,884 on Monday.

The Bearish View: A Possible Retreat?

On the flip side, Harvey also identified a possible downside for Bitcoin within the near term. He warned that the value might slip below $110,000 attributable to a risk-off move sparked by profit-taking or weakness in equity markets. “I think BTC could see a 5-10% retracement under such conditions,” he cautioned.

Before Bitcoin smashed through its previous all-time high of $112,000 on July 9, crypto analyst Rekt Capital sounded a note of caution. He suggested that the present cycle may need only a couple of more months of upward movement, especially if it mirrors the historical pattern from 2020.

Rekt explained that if Bitcoin’s cycle follows the 2020 trajectory, we would see a market peak in October, roughly 550 days after the Bitcoin halving in April 2024.