Bitcoin's Future: Consolidation or Bear Market?

CryptoQuant CEO Ki Young Ju has shared his long-term outlook for Bitcoin, suggesting that the cryptocurrency could consolidate in a range between $75,000 and $100,000. In a social media post, Ju pointed out the high trading volume around the $100,000 mark and raised the question of where new liquidity will come from to prevent a multi-year bear market.

Ju believes that Bitcoin may experience a prolonged consolidation phase similar to the early 2024 period, with prices ranging between $75,000 and $100,000. This consolidation period could last until Bitcoin sees bullish developments that bring in new liquidity, potentially driving the price higher.

During distribution phases, when new liquidity dries up, the price of Bitcoin tends to drop. The key question for the Bitcoin market is whether it will face a multi-year bear market, and the answer lies in identifying the source of new liquidity. If new liquidity can be attracted, it could help to sustain the Bitcoin price and prevent a prolonged bear market.

Ju's comments come as the crypto market has experienced significant volatility, with the total market capitalization losing over $100 billion in a single day. The U.S. pre-market session saw a plunge, with seven tech giants losing over $500 billion in market value. Despite the recent market turmoil, some analysts remain optimistic about the long-term prospects of Bitcoin and the broader crypto market.