In a recent analysis from Standard Chartered, the investment bank’s head of digital assets research, Geoffrey Kendrick, has suggested that Bitcoin’s recent price correction may have reached its conclusion. Following a significant drop that saw Bitcoin trading under $90,000 earlier this week, the largest cryptocurrency by market capitalization has made a slight recovery, trading near $92,000 at the time of the report. Kendrick likened the current sell-off to past drawdowns of similar magnitude, highlighting that it represents the third major pullback in the current market cycle.
Kendrick pointed out that various market indicators have now reset to extreme levels, with specific metrics indicating that the market may be stabilizing. Notably, he referenced MicroStrategy’s modified net asset value multiple (mNAV), which compares the company’s market capitalization against the marked-to-market value of its Bitcoin holdings. The mNAV has recently fallen to 1.0, a potential signal that the market has bottomed out. Kendrick expressed his optimistic outlook, saying, “I think this is enough to signify the sell-off is over and to eventually disprove those who think the halving cycle remains valid. A rally into year-end is my base case.”
Simultaneously, on-chain metrics provide further support for a potential Bitcoin recovery. Crypto analyst Ali Martinez has identified that Bitcoin tends to rebound when the realized loss margin for traders drops below -12%. Currently, this metric has dropped to -16%, indicating that traders are experiencing more substantial losses than typically seen, which could foreshadow a market turnaround.
Additionally, Martinez highlighted that Bitcoin’s Relative Strength Index (RSI) has fallen to 26, which is considered deep in oversold territory—levels last seen when the price hovered around $76,000 before a notable rebound. Observations from past market behaviors suggest that such an RSI often heralds market bottoms, presenting an opportunity for recovery.
As Standard Chartered maintains a bullish stance on Bitcoin, the bank also emphasized the increasing adoption of blockchain technology and its potential to revolutionize global transactions by settling all financial activities on blockchain networks.
With the recent data suggesting a potential price rebound, experts are observing closely for the next moves in the Bitcoin market, which could see the asset approach or exceed the $100,000 mark in the coming weeks.
