Crypto Market Consolidation Signals Bitcoin Price Recovery Ahead

Galaxy CEO Predicts Dovish Fed Could End Crypto Market Consolidation

Is the crypto market just catching its breath before the next big move? Galaxy Digital CEO Mike Novogratz thinks so. He believes the current crypto market consolidation isn’t a sign of weakness but rather a healthy pause before another surge.

Novogratz Believes the Market Is Resetting

Novogratz said that after a long bull run, many long-term holders are now taking profits and spreading their investments into other assets. This has slowed the crypto market in the short term, but he sees it as a good thing for the future.

“It’s a wet blanket right now,” he said, “but in the long run, it’s healthy. I don’t think we’ve seen the cycle top yet.”

He also expects a shift in U.S. monetary policy by the end of the year. According to him, a new and more dovish Fed chair could bring back optimism and push crypto prices higher again. 

Bitcoin May Be Near a Rebound

On-chain analyst Ali pointed out that BTC usually bounces back when traders’ realized losses drop below -12%. Right now, that number is at -11%, suggesting a possible rebound soon. 

Source: X (formerly Twitter) 

At the time of writing, Bitcoin price fell by about 1.1% in the last 24 hours and is currently trading near $102,000. Technical charts, in fact, show that it is in the oversold zone, which happens quite often before a recovery. However, analysts say that Bitcoin must move back above $110,000 to confirm any positive momentum.

Source: CMC 

ETF Outflows and Stablecoin Competition

Institutional investors have also become more cautious. U.S. spot Bitcoin ETFs saw over $220 million in outflows this week, ending a streak of positive inflows. This means big investors are holding back, waiting for clearer signals.

At the same time, ARK Invest’s Cathie Wood Bitcoin prediction suggests she lowered its 2030 Bitcoin target from $1.5 million to $1.2 million. The firm said the rapid rise of stablecoins like USDT and USDC is shifting how people use digital assets for payments. Stablecoins are becoming more popular for daily transactions, while Bitcoin is seen more as a long-term store of value.

Sentiment Weak but Long-Term Confidence Remains

The Crypto Fear and Greed Index currently stands at 21, indicating extreme fear among traders. This month, the total crypto market cap has seen a drop of close to 20%. Big players, however, such as Tether and MicroStrategy, have continued buying Bitcoin, showing that there is belief in the long-term growth of the virtual currency.

Periods of crypto market consolidation often happen after strong rallies. It’s when short-term traders exit, and long-term believers accumulate. According to the Bitcoin Price prediction, if it can hold above the $105,000 level and ETF flows start turning positive again, a recovery could be near especially if inflation cools and the Fed signals rate cuts.

The well-known crypto analyst @IamCryptoWolf, in a post on Platform X, observed that the most challenging period of the market has crossed and in the coming weeks, the market might enter into consolidation before resuming its upward trend. It is important to mention that on November 4th, though he cautioned that Ethereum was entering into its final correction phase and might drop to the range of $3400, Ethereum actually reached its bottom at $3057.
Source: X (formerly Twitter) 

The Calm Before the Next Bull Run

Perhaps this crypto market consolidation is just what it needs ahead of the next big run. Despite recent events that saw the prices plummet and investors turn extremely cautious, this is actually similar to previous pauses that have taken place before major rallies. 

Along with overbought signals, strong accumulation, and the chance for a supportive Fed, this could be the calm before the storm.