Bitcoin Poised for a 'Healthy Consolidation' Near $106K Before Resuming Uptrend
Bitcoin Consolidation Seen as Healthy Pause Before Potential Surge, Says Derive Founder
Bitcoin’s recent consolidation is a natural and potentially bullish development, allowing the market to absorb recent gains before continuing its upward trajectory, according to Derive founder Nick Forster.
In comments to Cointelegraph, Forster explained that although Bitcoin may now enter a sideways trading phase—partly influenced by recent geopolitical events—this shouldn’t be interpreted as bearish.
“While the recent spike to over $111,000 was remarkable, current price action suggests consolidation rather than an immediate breakout,” Forster said. “This phase is a healthy pause, giving the market time to digest recent gains and prepare for the next leg up.”
Price Pullback Follows Record High
Bitcoin (BTC) surged to an all-time high of $111,970 on May 22 before retreating slightly. At the time of writing, it trades around $105,976—still up 11.59% over the past 30 days, according to CoinMarketCap data.
Uncertainty Ahead, but Bullish Outlook Remains
While the next phase of Bitcoin’s movement remains uncertain, some analysts are optimistic. Bitcoin researcher Sminston With projected the cycle peak could range between $220,000 and $330,000, marking a potential 100% to 200% gain. Crypto trader Apsk32 offered a more conservative target of $220,000 by 2025.
Forster also weighed in on recent legal and macroeconomic developments. He noted that the U.S. Court of International Trade's May 28 decision blocking former President Donald Trump’s tariff actions helped ease inflation concerns. However, the Court of Appeals for the Federal Circuit ruled on May 29 that Trump can temporarily maintain the tariffs under emergency powers while appealing the lower court’s ruling.
Looking ahead, Forster said the Federal Reserve’s interest rate decision on June 18 will be “pivotal” for market direction.
Q3 Could Defy Historical Trends
While the third quarter has traditionally been a weaker period for Bitcoin—with an average Q3 gain of 6.03% since 2013—Forster suggested that 2025 could be different.
“Favorable regulatory developments and sustained institutional interest could support stronger performance in Q3 this year,” he said.
Historically, Q4 has been Bitcoin’s strongest quarter, averaging returns of 85.42%, according to CoinGlass.
ETF Inflows Yet to Reflect in Spot Price
Despite robust institutional demand, Bitcoin’s price has not fully reflected recent inflows into spot ETFs. Forster highlighted that over $6.2 billion flowed into BlackRock’s iShares Bitcoin Trust in May alone. In the week ending May 23, spot Bitcoin ETFs saw $2.75 billion in total inflows.
“ETF investments are often structured to provide exposure without directly impacting spot prices,” Forster explained, pointing to the delayed effect such inflows may have on the broader market.
