Continued Bitcoin Downtrend Predicted: Experts Caution About Liquidity Traps and Temporary Rises

Bitcoin has had difficulty recovering from its October slump, despite briefly surpassing $90,000. Analysts are cautioning investors about potential liquidity traps followed by increased sell-offs. Bitcoin has dropped over 30% from its peak of $126,000 in October, and market makers are expected to keep pushing prices down. However, a temporary bounce may occur to generate liquidity before another drop. Analysts predict this could lead to a decline to the $64,000-$70,000 range. They also suggest that the market has not yet reached its bottom and may not do so until late 2026. Despite this, some still predict short-term sideways movement with a potential rise to $107,000 before another decrease. On-chain metrics also suggest a bear market formation, with long-term holders no longer consistently making profits and the Bitcoin Cycle Market Index declining with the price.