Bitcoin Price Drop is Likely a Pause and Not a Reversal; LMAX Strategist Joel Kruger Says

Bitcoin Price Analysis: Correction Seen as Temporary Pause

LMAX strategist Joel Kruger argues that Bitcoin's recent price drop represents a market pause rather than a full trend reversal, maintaining a bullish outlook for the flagship cryptocurrency.

• Market Context: Bitcoin recorded its first bearish October close in six years, contributing to short-term negative sentiment.
• Expert View: Joel Kruger believes this is likely a pause, not a reversal, with potential for a rebound given historically bullish Q4 trends.

On-Chain and Fund Flow Pressures

The current consolidation phase is exacerbated by decreased demand from key investor groups. Data indicates that long-term holders have sold over 400,000 BTC in the past month. Concurrently, Bitcoin investment products saw significant outflows, with nearly $1 billion exiting last week.

Technical and Fundamental Backdrop

From a technical perspective, the BTC/USD pair is testing a key rising logarithmic support trend line. Analysts note that the price has not yet shown the euphoric surge typical of previous bull cycles, leaving room for upward movement. As long as this support holds, a push toward new all-time highs before year-end remains plausible.

Fundamentally, Bitcoin's case has strengthened through mainstream corporate adoption, notably by companies like MicroStrategy using it for treasury reserves. This adoption is further supported by increasingly clear regulatory frameworks in major markets like the United States.