The price of Bitcoin has not collapsed yet but is preparing for a major breakout: Is the current calm really preceding a historic leap?
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 digital currency Bitcoin had an exceptional year that began after the U.S. 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 the expansion of institutional adoption.
However, the picture changed after that peak, as the price fell by more than 30% to settle below $90,000, leading to a general shift in mood towards pessimism and the expectation of the beginning of a new bearish phase.
However, analyst “Merlijn The Trader” disagrees with this view, relying on the analysis of analyst “Raoul Pal” who believes that the traditional four-year cycle model is no longer valid, and that Bitcoin's movement is primarily driven by liquidity, especially after the entry of large funds and institutions and its transformation into a global commodity-like asset.
This trend confirms that corrections are no longer the end of bull markets, but rather opportunities for a new launch, requiring traders to change their approach to the market and focus on liquidity dynamics instead of old timelines, especially with indicators such as the nearing of the economic cycle bottom, increasing financial stimulus, the return of monetary expansion, and institutional pressures to enter the market.
And although it is difficult to predict significant increases amid recent volatility, another analyst known as “Wise Crypto” proposed a highly optimistic scenario, expecting the price of Bitcoin to reach levels that could reach $600,000 in 2026 if a set of factors align, including the end of the Federal Reserve's quantitative tightening, an additional rate cut, improvements in short-term liquidity, along with the effects of the U.S. election cycle, factors that could all play in favor of high-risk assets.
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