Bitcoin (BTC) has been under a week of high pressure after falling nearly 14% over the past seven days and once again approaching the USD 60,000 area, a level considered important by many traders. A break below this support level could increase selling pressure and affect other parts of the market, but not all analysts are pessimistic about the likely scenario.
Geoff Kendrick, global head of digital asset research at British bank Standard Chartered, believes the correction may be nearing its final stages. According to analysts, There are three pillars that suggest that the bulk of the liquidation had already taken place. And the market may be close to finding an apartment.
One distinguishing factor is the work of Strategy, a company known for maintaining one of the largest corporate reserves in Bitcoin. Kendrick recalled that after selling in December 2022, he bought back more BTC just a few days later. After the recent sell-off of 32 Bitcoins, analysts believe a similar move could be repeated. If significant new purchases are made, the market may interpret it as a sign of confidence in current prices.
The second factor Standard Chartered focuses on is the 11 spot Bitcoin ETFs listed in the US. Although nearly $5 billion has flown out of these funds in the past three weeks, Kendrick insists the overall situation remains strong. Since its inception in January 2024, the ETF has had cumulative net inflows of more than $50 billion and its holdings have barely decreased. For the bank, this reflects that the majority of institutional investors maintain a long-term vision.
The third factor is related to the futures market. Approximately $1.5 billion of leveraged long positions were liquidated during the recent selloff. According to Kendrick, this deleveraging will reduce the risk of further cascading liquidations and help stabilize the market after extreme volatility.
Added to these signals is another indicator that reflects the cooling of the ecosystem, although the substance does not mention it: the Bitcoin NFT market. Digital collectibles has accumulated negative results for more than 10 consecutive days, with transaction volumes and user activity continuing to decline.
Since NFTs are typically one of the most speculative segments of the market, this action is usually interpreted as a sign of declining risk appetite. As investors become more cautious, Demand for these assets is typically lower than demand for major cryptocurrencies.. But analysts believe the process could also help eliminate excessive speculation and contribute to a healthier economic recovery in the future.
In addition to these factors, Standard Chartered highlights relevant technical signals. Bitcoin is trading near its 200-week simple moving averagean indicator that has served as a support zone during several bear markets in the past. In previous cycles, prices stabilized around this level before entering a new bullish phase.
“I think you can say that towards the end of 2026, when BTC gets to $100,000 and ETH gets to $4,000, this was the buy zone that we were all hoping for,” he said. Be alert!
-Gregory Kendrick
nevertheless, The bank acknowledges that there is no certainty as to the exact point at which the adjustment will end. Bitcoin continues to operate in a volatile environment, where investor sentiment can change rapidly depending on ETF flows, institutional investor activity, derivatives markets, and macroeconomic conditions.
For Kendrick, if the strategy buys BTC again, the ETF remains resilient, and leverage continues to fall, the chances of the market nearing the bottom will increase. Nevertheless, A sharp decline at the USD 60,000 level could open the door to a new phase of weakness. For now, the market remains divided between those who see an opportunity for accumulation and those who fear the decline may not be over yet.
