Standard Chartered: Bitcoin Rally Could Resume Soon

Bitcoin’s price has bounced back from a recent dip below $90,000, fueled by a prediction from Standard Chartered that the market bottom may already be in. The cryptocurrency is currently trading near $92,000, and market experts believe a rapid rise to $100,000 is possible.

Geoffrey Kendrick, head of digital assets research at Standard Chartered, stated that Bitcoin’s recent correction closely resembles past drawdowns, suggesting the sell-off is nearing its conclusion. Kendrick’s assessment, shared in a research note to clients on Tuesday, identifies the latest BTC decline as aligning with a third major pullback in the current market cycle.

Supporting this view are on-chain metrics indicating capitulation. Ali Martinez noted that the traders’ realized BTC loss margin has dropped to -16%, surpassing the typical -12% level historically associated with market bottoms.

Technical indicators further reinforce the potential for a rebound. Bitcoin’s Relative Strength Index (RSI) has fallen to 26, signaling oversold conditions. This level was last seen when Bitcoin traded near $76,000, preceding a significant price increase.

Standard Chartered’s analysis also highlights a bullish outlook for blockchain adoption, anticipating broader integration of blockchain networks for global transactions.

MicroStrategy’s modified net asset value multiple (mNAV) has also fallen back to 1.0, a metric Kendrick sees as potentially signaling a market bottom. Kendrick anticipates a year-end rally and challenges the validity of the traditional halving cycle’s influence.

Disclaimer: This report is for informational purposes only and should not be considered financial advice. Market conditions are subject to change, and independent verification is encouraged.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.