Bitcoin has recently moved without a clear direction, but internal indicators instead point to the possibility of further gains, an analysis showed.

Bitcoin Magazine reported on Oct. 22 that Matt Crosby (맷 크로스비), research director at bitcoin analysis platform Look Into Bitcoin, assessed the current bitcoin trend as a healthy consolidation phase and said a sharp move higher is being prepared.

Crosby likened the current sideways trading to a "spring" and said it is a process of building energy before a breakout. He judged that rather than overheating sharply, bitcoin is continuing to absorb selling pressure and demand within a certain range.

He cited exchange-traded fund (ETF) fund flows as the basis for his view. He also said macro indicators and on-chain supply and demand conditions support the upside possibility. Crosby said ETF flows, macro data, on-chain supply and demand, and the derivatives market all point to a rise in bitcoin.

On macroeconomics and liquidity, global M2 and the Everything Indicator were cited as key measures. Crosby said bitcoin is affected by global liquidity and risk-asset markets. He also flagged the timing of "true decoupling" in which bitcoin moves independently of those trends as an issue, but said that for now the linkage with macro conditions remains strong.

An increase in companies holding bitcoin as a treasury asset and the so-called "money multiplier effect" were also cited as key variables. The view is that as corporate bitcoin holdings expand, the supply-demand base could strengthen.

Potential for capital inflows was also emphasised. Crosby said that if just 1 percent of global capital flowed into bitcoin, the price could reach $275,000. He focused on the point that when new money flows into an asset with limited supply, the price can react sharply.

Whether selling pressure has been exhausted was also presented as a key variable. Crosby said geopolitical variables and artificial intelligence (AI) money flows should be considered, but said the key that will determine the future direction lies in how much selling has weakened in the market. He also interpreted the recent sideways move as an accumulation phase ahead of an upside breakout rather than simple market fatigue.

The assessment stresses that supply and demand, liquidity and the structure of the derivatives market should be considered together rather than short-term price swings. Even if bitcoin does not immediately reveal its direction, ETF fund flows, the intensity of long-term holders' selling and the combination shown by global liquidity indicators remain variables that will determine the next trend.