Bitcoin’s recent bullish momentum has ignited speculation about its potential, with projections placing its upper limit anywhere between $135,000 and $500,000. As the cryptocurrency navigates its price discovery phase, market participants are closely watching for signs of consolidation or further surges.

CryptoQuant CEO Ki Young Ju recently adjusted his forecast, setting a Bitcoin price ceiling of $135,000, down from earlier projections. His analysis cites strong capital inflows from exchange-traded funds (ETFs) as a driving force behind the price movement but cautions against the risks posed by an overheated futures market. Currently, the perpetual futures market is overleveraged by a factor of 2.7 compared to early 2024, which could trigger a wave of liquidations, driving prices lower.

Bitcoin’s price has already reached $90,000, with some long-term holders beginning to take profits, according to CryptoQuant contributor Percival. However, many in this cohort remain confident, holding out for significantly higher prices to maximize their returns. Data from Realized Price UTXO Bands suggests these holders are waiting for at least a 10x gain before exiting their positions.

Meanwhile, BaroVirtual, another analyst, anticipates a potential correction to $70,000 as part of Bitcoin’s path to $100,000. Maintaining support above $85,000 could help avoid deeper setbacks, but failure to consolidate could open the door to volatility.

Ki Young Ju has also hinted at the possibility of Bitcoin briefly dipping to $58,974 if corrections occur, but he believes this would be a necessary reset to sustain the bull market. Without a healthy pullback, an extended rally might risk setting the stage for a bear market in 2025.

The debate comes as Bitcoin’s market behavior reflects both bullish enthusiasm and caution. The market is now in uncharted territory, and while optimism is high, analysts remain vigilant for signs of overheating.