Some analysts believe that what is happening to Bitcoin currently cannot be described as a collapse, but rather a phase of accumulation and price pressure that precedes a potential strong movement.
The cryptocurrency Bitcoin had an exceptional year that began after the US presidential elections in 2024, peaking in October with a historic high exceeding $126,000, in addition to stabilizing for several months above the six-figure level supported by demand for ETF funds and expansion in institutional adoption.
However, the picture changed after that peak, as the price dropped by more than 30% to settle below $90,000, leading to a shift in general sentiment towards pessimism and the expectation of a new bearish phase beginning.
Nonetheless, analyst 'Merlijn The Trader' disagrees with this view, relying on the argument of analyst 'Raoul Pal' who believes that the traditional four-year cycle model is no longer valid, and that Bitcoin's movement is primarily driven by liquidity, especially after the entry of major funds and institutions transforming it into a global asset similar to commodities.
This trend confirms that corrections are no longer the end of bullish markets, but rather opportunities for a restart, requiring traders to change their approach to the market and focus on liquidity dynamics instead of old timelines, especially with indicators like the approach of the economic cycle bottom, increased financial stimulus, the return of monetary expansion, and institutional pressures to enter the market.
Despite the difficulty in predicting significant rises amid recent volatility, another analyst known as 'Wise Crypto' proposed a very optimistic scenario, expecting Bitcoin's price to reach levels that could reach $600,000 by 2026 if a set of factors align, including the end of quantitative tightening by the Federal Reserve, an additional cut in interest rates, improved short-term liquidity, in addition to the effects of the US election cycle, all of which could favor high-risk assets.
