Analysts Split Between $92K Dip and $135K Surge for Bitcoin

CryptoQuant warns of a $92K flush while volume metrics hint at a summer blast-off to $135K, leaving traders scratching their heads. What Do the Odds Show? After setting a new all-time high (ATH) of $111,814 a month ago on May 22, Bitcoin experienced a pullback with the top cryptocurrency presently experiencing a consolidation. At the time of this writing, BTC was trading at $103,498 per CoinGecko data . As a result, analysts are torn between painting a bullish or bearish picture as Bitcoin’s compression intensifies. Market analyst Daan Crypto Trades opined, “ BTC Still hanging around the $105K area which is the middle of the monthly range and right at the monthly open. Price has been compressing and it’s clear that the market is waiting for a big move to occur.” Based on this analysis, Bitcoin’s destination might be at its monthly high of $110K or monthly low of $100K. If Bitcoin breaks down from the current range, on-chain metrics provider CryptoQuant speculates the leading cryptocurrency might nosedive to the $92K. What are the Chances of Bitcoin Making a Comeback? Crypto analyst Lingrid believes that Bitcoin might be experiencing the calm before the storm with the target being $112K. She noted, “BTC has printed three consecutive triangle continuation patterns with each breakout sending price higher into the $112K–$114K resistance zone. Now consolidating again within a descending wedge, the pair is testing the lower support band with potential for one more sweep. A rebound from this area may set up a textbook push into the same target zone. If structure holds, the breakout could be stronger than the last.” Similar sentiments were shared by Cas Abbe that on-chain metrics were showing a breakout to the upside. The market analyst stated, “ BTC price is consolidating, but On-Balance Volume (OBV) is still making higher highs. For those who don’t know, rising OBV indicates buying pressure.If OBV continues to go up, BTC will eventually break out of its consolidation range. I’m still convinced that $130K-$135K BTC will happen in Q3 2025.” The OBV indicator is a technical analysis tool that measures buying and selling pressure as a cumulative indicator based on volume flow. Therefore, OBV helps confirm price trends because if the price is rising and OBV is rising, the trend is likely strong and supported by volume. This shows that a bullish picture is being painted in the Bitcoin ecosystem. Meanwhile, Bitcoin exchange-traded funds (ETFs) continue experiencing an uptick, given that they recently witnessed strong inflows of $388.3 million despite the ongoing geopolitical tensions between Israel and Iran. Will the Slashing of Interest Rates Reignite Bitcoin’s Fire? Federal Reserve Governor Christopher Waller recently signaled a possible interest rate cut as soon as next month, citing a cooling economy and downplaying the inflationary impact of new tariffs as minimal and short-lived. He stated , “I think we’ve got room to bring it down, and then we can kind of see what happens with inflation. We’ve been on pause for six months to wait and see, and so far the data has been fine.” Here’s why slashing interest rates is increasingly seen as a bullish signal for Bitcoin: 1. Lower Rates Diminish Bond Appeal, Drive Risk Appetite Historic Fed rate cuts reduce fixed-income yields, pushing investors toward riskier assets. As Meltem Demirors from CoinShares notes , “when real interest rates decline, [Bitcoin’s] appeal grows” The June 18 Federal Open Market Committee (FOMC) held rates at 4.25–4.50%, yet projections shifted toward two cuts later in 2025. That pivot has lifted sentiment in crypto markets. 2. On‑Chain Indicators Point to Bullish Setups On‑chain data from CryptoQuant suggests stabilizing open interest and accumulating ask‑liquidity near $106K—signs of a potential short squeeze. Meanwhile, technicals remain constructive: Bitcoin continues respecting support at ~$103K–105K, with upside targets between $112K–118K, should bulls defend those levels. 3. Institutional Tailwinds Compound Macro Stimulus A dovish Fed enhances the case for Bitcoin adoption among institutions. Analysts from JPMorgan, CMC Markets, and CryptoQuant argue earlier-than-expected cuts could trigger another rally toward $112K–140K As major public firms and sovereign players continue accumulating Bitcoin, easier monetary policy amplifies their conviction. 4. Historical Precedent Confirms the Pattern Historically, Fed easing has coincided with crypto bull runs. For example, in September 2024, Bitcoin jumped ~2.5% ahead of anticipated cuts. Similar behavior is emerging in 2025: cooler inflation data, supportive Fed commentary, and easing expectations have fueled BTC’s break from the $105K range. Conclusion If the Federal Reserve begins cutting rates potentially starting in July 2025, there is a high likelihood that Bitcoin will surge. With macro conditions aligning, such as inflation cooling and institutional adoption rising, cumulative tailwinds may carry BTC toward $112K–140K in the months ahead. Nevertheless, the diverging on-chain signals should not be ignored based on the $92K dip warning, as well as the $135K breakout because Bitcoin currently finds itself in a ranging market.

Source: Coinpaper