This Analyst Has Called a Bitcoin Dip to $92,000; And He’s Got Proof

Bitcoin made headlines in May after breaking its earlier all-time high. On May 21, 2025, it jumped to $110,797, beating its previous record of $109,588 set in January. The very next day, it climbed even higher to $111,980, almost touching $112,000.

This move comes after a slow first quarter for the market. Back in early April, Bitcoin was trading around $74,500 during rising US-China trade tensions. Since then, its price has steadily climbed, making a strong recovery. At the time of writing, Bitcoin is trading at$104,820.

While Bitcoin has gained over 50% in six weeks, major altcoins Ethereum (ETH) and Solana (SOL) haven’t managed to keep up. Even with a 97% bounce from April’s lows, they remain far below their past highs. This has pushed Bitcoin dominance higher, reaching 65% in May 2025, a level last seen in 2021. But now that the market is entering a new month, there is uncertainty about how Bitcoin and altcoins will perform.

On-Chain Data Flags Potential Overheating

According to CryptoQuant analyst Axel, on-chain data shows that the market could be entering overheated territory. The Net UTXO Supply Ratio indicator has delivered four consecutive sell signals by the end of May 2025. Simultaneously, the UTXO Ratio has declined from its local highs, a common pattern during periods of profit-taking and reduced demand.

Source: Axel/X

This on-chain development shows a significant portion of Bitcoin is now sitting in unrealized profit, increasing the chances of selling pressure as traders look to lock in gains. Historically, this type of market setup calls for a cooling-off period or a minor correction to rebalance supply and demand dynamics.

Analyst Outlines Two Likely Bitcoin Scenarios Ahead

Based on the current technical setup and on-chain signals, the analyst has outlined two likely outcomes for Bitcoin in the coming weeks:

1. Sideways Consolidation Between $95,000–$105,000: Bitcoin could enter a stabilization phase, fluctuating within this price band as the Net UTXO Supply Ratio normalizes around 0.85–0.9. Such sideways movement would offer the market a much-needed breather after a sharp rally.
2. Mild Pullback to $92,000–$96,000: A correction remains a possibility, with potential support at $94,700 (the 200-day moving average) and $92,000 (a buy-order cluster). This short-term dip would help ease overbought conditions and set the stage for a healthier rebound.

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