Blockchain analytics firm CryptoQuant believes the current market correction may not be over yet, estimating Bitcoin's final bear market bottom at around $55,000. Historical data shows that a true market bottom typically requires several months of consolidation and bottoming, rather than a single sell-off event. Meanwhile, Standard Chartered Bank recently lowered its short-term outlook, predicting the price may fall back to $50,000 before a year-end rebound.
CryptoQuant: Bitcoin's ultimate support lies at 55K.
CryptoQuant 's core analysis focuses on the Realized Price, which is the average price Bitcoin ultimately trades on the blockchain, representing the market's holding cost. Historically, this indicator has often served as a strong support level during bear markets. Currently, its Realized Price is around $55,000, still below the current market price of Bitcoin. This means that if the price falls further, it will test investors' bottom line, and the market correction may not yet be over.
It will take 4-6 months to form a bottom after hitting the low point.
CryptoQuant points out that in previous bear markets, FTX's price fell by 24% after the crash, and by 30% during the 2018 bear market cycle. Bitcoin typically takes four to six months to form a bottom after reaching these levels.
Furthermore, the behavior of long-term holders does not yet reflect signs of complete capitulation. CryptoQuant states that long-term holders are currently selling at prices close to their break-even point, whereas they typically suffer losses of 30% to 40% at the bottom of previous bear markets. Due to the lack of extreme market corrections, analysts believe there is still room before a true bottom is reached, and it will take several months to digest the selling pressure.
Macroeconomic perspective and institutional expectations
Besides on-chain data, the overall economic environment also influences cryptocurrency market pricing. Standard Chartered recently lowered its short-term outlook, predicting that Bitcoin may dip to $50,000 before rebounding by the end of the year. This expectation reflects a conservative strategy among investors amid macroeconomic uncertainty. For the general investing public, potential valuation corrections mean a need to increase risk awareness. The focus will shift to changes in liquidity and whether institutional funds will re-enter key cost zones.
( AI panic spreads, Standard Chartered lowers Bitcoin target price, BTC may retest $50,000 )
This article, CryptoQuant: Market Correction Not Over Yet, Bitcoin's Ultimate Support at 55K, first appeared on ABMedia ABMedia .
