Bitcoin Price Became Unpredictable: This Period Can Last Long! - Coin Bulletin

As the downward trend in **Bitcoin (BTC) indicators intensifies, the price becomes unpredictable and the consolidation process that will determine its direction may take longer than expected.

According to CryptoQuant, the number of active wallets and transaction volume on the Bitcoin network has started to decline. In particular, the accumulation rate of spot Bitcoin ETFs has slowed down, and small-scale capital outflows have been observed recently. There is also a decrease in transaction outputs in the UTXO count, and the magnitude of this decline resembles the correction period in September 2023. The analyst noted that if the current trend continues, signs of investor exodus similar to the peak of the 2017 market cycle could be seen. However, it is too early to say that the current cycle has ended just based on the decrease in UTXO count; other indicators still present a positive outlook.

(# Bitcoin needs new things to rise

The main concern in the market is the noticeable weakening of investor sentiment. In the recent rise of Bitcoin, the election victory of Trump and expectations of strategic asset allocation in the US were influential. However, concrete executive orders or legal regulations have not yet been implemented. In addition, geopolitical tensions, especially related to trade policies, triggered risk aversion behavior. The fact that previous positive expectations have already been priced in indicates the need for uncertainties to be resolved or new positive catalysts to emerge.

An analyst emphasized that it is difficult to predict short-term price movements under current conditions. If market conditions improve and Bitcoin starts to rise again, the recovery of investor confidence is expected. However, if the uncertainty continues, a long period of stagnation similar to the consolidation period that started in March 2024 may be experienced.