Bitcoin nears potential bottom, but more pain possible

Bitcoin has dropped below $60,000, with over half its supply at a loss. Analysts warn of further declines and weak demand, suggesting the correction may not be over.

Bitcoin has recently experienced notable declines, with its price dropping below $60,000. More than half of its circulating supply is now trading at a loss, a situation that analysts often associate with the approach of a bear market bottom. However, they caution that further declines of 15% to 26% could occur before a true bottom is reached. CryptoQuant has identified $53,600 as a potential baseline, but weak demand and significant outflows from spot ETFs cast doubt on a swift recovery. Demand has sharply contracted, with a weekly drop of 652,000 BTC—the largest since early 2022. Technical patterns, such as the ABC correction, suggest the possibility of another rapid decline if historical trends repeat. While some indicators hint at a bottom, most experts remain cautious, emphasizing that the correction may not be over and the market could take months to stabilize.