Bitcoin (BTC) has recently fallen below $90,000 for the first time in seven months.
There is no market consensus on Bitcoin's direction, but some analysts predict the decline could be as low as $80,000, while others say a recovery is imminent.
The final analysis in this regard was provided by Standard Chartered.
Bitcoin selling is over, year-end rally is just around the corner!
In an interview with CoinDesk, Jeffrey Kendrick, head of digital asset research at Standard Chartered, predicted that Bitcoin’s recent sell-off could be over, leading to a year-end bull run.
The analyst said the recent Bitcoin market decline is a typical correction pattern that has been repeated over the past few years.
Kendrick noted that this drop is the third major 30% correction since the spot Bitcoin ETF was launched in the US last year. These declines in Bitcoin are always followed by strong recoveries after sellers exit the market.
The analyst added that the base case for BTC is for Bitcoin to recover by the end of the year.
Kendrick emphasized that the recent decline was not due to a structural change in the position of long-term investors, but rather to a temporary influx of capital due to a combination of short-term profit taking and forced liquidations.
“I see the recent decline as similar to the third (rapid and painful) decline of roughly the same size that has occurred over the past few years.
“Furthermore, some fundamental data suggests that the recent decline may be coming to an end. A recovery towards the end of the year is my base case.”
Kendrick also cited MSTR’s adjusted NAV ratio as a key sign of Bitcoin’s decline and seller fatigue.
The analyst said key market metrics, including MicroStrategy's adjusted NAV, dropping to zero suggests seller fatigue. Key indicators of seller exhaustion, such as MicroStrategy’s Adjusted NAV dropping to 1.0, could signal a bottom for Bitcoin and the market.
Kendrick recently reiterated his ambitious year-end price target for Bitcoin of $200,000.
*This is not investment advice.
