CryptoQuant, a blockchain analysis firm, believes that this market correction may not be over yet, and estimates the final bear market bottom for Bitcoin to be around $55,000. Historical data shows that the true market bottom usually takes several months of consolidation and accumulation, rather than being completed by a single sell-off event. At the same time, Standard Chartered Bank has recently downgraded its short-term outlook, predicting that the price may fall back to $50,000 before rebounding by the end of the year.
CryptoQuant: Bitcoin’s Ultimate Support Level at 55K
CryptoQuant’s analysis centers on the realized price, which is the average on-chain transfer price of Bitcoin, representing the market’s cost basis. During previous bear markets, this indicator has often served as a strong bottom support. Currently, the realized price is about $55,000, still below Bitcoin’s current market price. This suggests that if the price drops further, it will test investors’ bottom line, and the market correction may not be over.
After hitting the low, it takes 4 to 6 months to build a bottom
CryptoQuant points out that in previous bear markets, after the FTX collapse, prices fell by 24%, and during the 2018 bear cycle, they declined by 30%. After reaching these levels, Bitcoin typically takes four to six months to form a bottom.
Additionally, the behavior of long-term holders has not yet shown signs of complete capitulation. CryptoQuant states that long-term holders are currently selling near their breakeven point, and in past bear market bottoms, they usually suffered losses of 30% to 40%. Due to the lack of extreme washouts, the analysis suggests there is still room before reaching the true bottom, and several months are needed to absorb selling pressure.
Macroeconomic perspective and institutional expectations
Beyond on-chain data, the overall economic environment also influences crypto market pricing. Standard Chartered Bank has recently downgraded its short-term outlook, predicting Bitcoin may dip to $50,000 before rebounding by year-end. This expectation reflects a cautious capital strategy amid macro uncertainties. For retail investors, potential valuation adjustments imply increased risk awareness. Future focus will shift to liquidity changes and whether institutional funds will re-enter at key cost zones.
(AI panic spreads, Standard Chartered downgrades Bitcoin target price, BTC may test $50K)
This article, CryptoQuant: Market correction not over yet, Bitcoin’s ultimate support level at 55K, first appeared on Chain News ABMedia.
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