Bitcoin May Face A Correction Before the Next Rally

• Economist Alex Krüger expects Bitcoin to outperform gold between now and next year, despite the signs of a short-term correction.
• Technical indicators are showing a possible correction before another move toward $120,000.
• Traders Union is providing 5-minute to 1-week BTC/USD technical analysis, offering investors/traders reliable insights on the potential movements of Bitcoin price.

Bitcoin’s recent moves have sparked significant discussions about where its price could head next. The world’s leading crypto asset has demonstrated strength and is holding strong above major support levels, even as analysts debate whether another rally or a correction is next. 

Economist and crypto analyst Alex Krüger, who correctly forecasted the “Liberation Day” market crash earlier this year, has shared a fresh Bitcoin price prediction. Bitcoin may face correction before next rally, according to Krüger, who notes that short-term fluctuations are likely before a broader bullish continuation.

While experts are forecasting BTC price levels, Traders Union is providing accurate Bitcoin price analysis. Numerous traders and investors are using this platform to access highly accurate 5-minute, 30-minute, 1-hour, 1-day, and 1-week BTC price forecasts. 

Krüger Sees Strong Yearly Outlook for Bitcoin

Krüger believes Bitcoin could outperform gold between now and the coming year. This performance is expected to be supported by a favourable macroeconomic environment. 

He expects both assets to benefit from policies under the Trump-led administration and a looser Federal Reserve stance. “Strong view: BTC will vastly outperform gold in 2026,” Krüger posted on X on October 17. 

He later added that while gold remains a solid buy, Bitcoin’s fundamentals appear even stronger due to its rising institutional adoption. Krüger explained that gold’s rally isn’t over yet. However, he also said that the same factors boosting equities could lift Bitcoin even higher. “The same catalyst that would propel equities and Bitcoin higher in 2026 would benefit gold. Dips are thus for buying,” he said.

Signals Indicate a Short-Term Pause

Even with the positive long-term predictions, data from TradingView and Coinglass show that Bitcoin might face a pause before another rally. On October 23, Bitcoin traded around $111,000 and gained about 63% year-over-year. Despite this strength, analysts are watching for signs of a correction before the next big move.

One technical signal catching attention is a hidden bullish divergence on the RSI. Between June and October, Bitcoin’s price made higher lows while the RSI showed lower lows. This pattern often points towards a coming upward trend. This same setup appeared in September before Bitcoin jumped 15%.

If that pattern repeats, the price could target around $119,900 as long as Bitcoin clears the $116,500 resistance zone.

On-Chain Data Supports the Bullish Case

Blockchain data strengthens the view that another rally could be forming. Two important metrics, the NUPL and the Accumulation Trend Score, show that big players are back to buying Bitcoin. The NUPL ratio, which measures how much profit holders have on paper, dropped to 0.48 in late October. That level previously marked the start of a 3.8% price gain. A lower NUPL usually means investors have little incentive to sell, which reduces selling pressure.

Bitcoin’s NUPL has been dropping lately | source: Coinglass

The Accumulation Trend Score, which tracks how much large entities are buying, recently rose back to 1. That value indicates that major holders, such as funds and whales, are actively accumulating again. This shows rising confidence in Bitcoin’s next move.

Levels to Watch

For now, the most important resistance remains at $116,500. Bitcoin has failed to break above this zone several times since October 11. Analysts say that a daily close above that level could confirm bullish continuation and open the way toward $119,700 or even $125,700. 

On the downside, support stands around $110,050. Losing that could trigger a drop toward $108,500 or $106,600.

The Strongest Bitcoin Price Levels to Watch 

Beyond technical patterns, upcoming CPI data could affect Bitcoin’s next direction. A softer inflation reading would support higher prices, while a stronger one could pressure risk assets.

Investor Ted Pillows noted that the next move depends on how the market reacts to inflation numbers. “BTC has reclaimed the $110,000 support level. CPI data will decide the next move. I’m looking for BTC to reclaim $113,000 to $114,000 for more upside, but if this pump turns out to be a fakeout, expect another sharp correction,” he said.

Why Some Analysts Expect a Deeper Drop?

While many analysts remain optimistic, others, such as Tom Lee, warn that Bitcoin could face a larger pullback. The Fundstrat co-founder said the cryptocurrency could still drop by as much as 50% despite having Wall Street’s support.

Lee reminded investors that institutional involvement doesn’t eliminate market risk. “Even with Wall Street in the game, Bitcoin can still fall sharply if market conditions worsen,” he said. He also pointed out that past market cycles show even strong assets can lose half their value during corrections. 

His advice to investors is simple: Diversify, plan, and manage risk. Traders Union would be the best place to find authentic BTC, ETH, SOL, DOGE, and other cryptos’ price analysis to prepare perfect crypto investment plans.