Bitcoin Enters Consolidation as Matrixport Signals Short-Term Exhaustion After October Flash Crash

Matrixport‘s market view notes that Bitcoin is shifting from a bull market into a consolidation phase, with the macro backdrop still supportive thanks to ongoing Fed policy easing and ample liquidity; however, several technical and structural measures point to near-term exhaustion.

Bitcoin has slipped below its 21-week moving average for two weeks running, a historic boundary separating bullish momentum from bear dynamics. On-chain liquidity growth has cooled, and the realized market cap inflows show weakness.

A October 11 flash event underscored vulnerabilities, with billions in forced liquidations triggering a market sequence. Open Bitcoin futures positions have contracted, long-term holders are taking profits, and overall volatility remains subdued.

Meanwhile, a firmer US dollar, retreating bond yields, and softer labor metrics hint at slower global growth, suggesting risk assets like Bitcoin may stay range-bound until confidence is rebuilt.