CryptoQuant Sets Bitcoin Correction Target at $96,700 as Analysts Warn of Market Liquidity Impact

The price of the first cryptocurrency is aiming to return to $96,700, a figure that reflects the average purchase price for short-term investors. This level is seen as a potential support point, according to CryptoQuant.

Analysts’ bearish outlook is influenced by the fear and greed index. The indicator has not reached a state of extreme optimism, suggesting the absence of the typical FOMO (Fear of Missing Out) buying phase seen during rallies towards ATH.

Experts believe that a correction in the leading cryptocurrency could adversely impact altcoins, including Ethereum, as it may «siphon off» liquidity from other digital assets.

«We recommend waiting and monitoring market movements with the possibility of entering new positions after the anticipated pullback is completed,» the analysts concluded.

There is little optimism regarding Bitcoin’s short-term prospects at Bitcoin Magazine as well.

Analysts highlighted that prices have fallen below the resistance levels established around December 2024 to January 2025, near $106,000. They emphasized that bulls need to push the price back above this threshold.

Previously, Rachel Lucas from BTC Markets noted that if Bitcoin remains in the range of $103,000 to $105,000, there will be conditions for a new wave of growth towards $115,000.

Additionally, Coinbase forecasted a positive impact on the dynamics of the digital asset market from the reimbursement of $5 billion to FTX creditors.

Earlier, Bernstein identified institutional purchases as one of the five key factors for the continued rise in Bitcoin’s price.