Market Analysis: Bitcoin's Consolidation and Potential Upside
Bitcoin (BTC) traders have experienced a week of contention, with sellers consistently capping price breakouts above $112,000 and buyers defending dips to the $107,000 to $108,000 zone. While some analysts have expressed concern over BTC's inability to sustain prices above $112,000 and its frequent revisits to range lows, the observed range compression on the 4-hour and daily charts could signal a positive development.
Technical analysis traders often highlight that "compression before expansion" is a common pattern, occurring as volatility decreases and prices consolidate following significant market movements. An example of this was the Oct. 10 sell-off, which saw a 50% drop in BTC open interest.
Underlying Positive Developments: ETF Inflows and Spot Accumulation
Despite the day-to-day price action, several positive developments suggest that BTC is poised to eventually reclaim the $120,000 price zone. On Tuesday, spot Bitcoin ETFs recorded inflows totaling $477 million, occurring as the BTC price moved from $107,500 to $114,000.
Data also indicates that spot buyers across various order-size cohorts on Binance and Coinbase exchanges have been actively purchasing BTC throughout the week, covering the range from $101,500 (Binance) to the week's high of $114,000.
Furthermore, Glassnode's Bitcoin Accumulation Trend Score metric currently stands at 0.924. This metric, according to the on-chain data provider, indicates that a score closer to 1 signifies that larger entities or a significant portion of the network are accumulating Bitcoin, while a value closer to 0 suggests distribution or a lack of accumulation.
Macroeconomic Factors and Altcoin Recovery Prospects
Multiple analysts anticipate that Bitcoin's consolidation phase could conclude early next week. They also suggest that altcoins may begin to recover, influenced by a busy US macroeconomic calendar that includes several key events. These events are expected to resolve a number of fear-inducing catalysts that have been suppressing prices across the cryptocurrency market.
We have had capitulation, everyone thinks no alt-season. Let us remind everyone that:
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) October 24, 2025
1) QT will end
2) Gold is in distribution phase
3) Macro is stabilizing
4) China US polymarket odds for a deal above 60%
5) $7.4 Trillion in MMF that are about to rotate into market as fed… https://t.co/3BohO4ckPT