Standard Chartered Assessed Bitcoin’s Latest Drop! “Correction Over, Year-End Rally Imminent!”

Bitcoin (BTC) fell below $90,000 after seven months in the latest sell-off.

While there is no consensus on the market regarding the direction of Bitcoin, some analysts predict that the decline could drop to levels of $80,000, while others state that a recovery is imminent.

The final analysis on this point came from Standard Chartered.

Bitcoin Selling Ends, Year-End Rally Imminent!

Speaking to Coindesk, Geoffrey Kendrick, head of digital asset research at Standard Chartered, predicted that the recent sell-off in Bitcoin may be over and that it could experience a year-end rally.

The analyst said that the recent market decline in Bitcoin is a typical correction pattern that has been repeated over the past few years.

Kendrick noted that the current pullback is the third major 30% correction since the launch of spot Bitcoin ETFs in the US last year. These pullbacks in Bitcoin have always been followed by a strong recovery after sellers exit the market.

The analyst added that his base case for BTC is for Bitcoin to recover by the end of the year.

Kendrick emphasized that the recent sell-off was not due to structural position shifts among long-term investors, but rather a temporary influx resulting from overlapping short-term profit-taking and forced liquidations.

“I see the recent sell-off as similar to the third (rapid/painful) sell-off of almost the same magnitude that occurred over the last few years.

“Furthermore, some fundamental data suggests the recent sell-off is coming to an end. A recovery towards the end of the year is my base case.”

Kendrick also cited MSTR’s modified NAV ratio as a key sign that Bitcoin’s sell-off and sellers are exhausted.

According to the analyst, key market indicators, including MicroStrategy’s modified NAV, falling to zero suggests sellers are exhausted. Key metrics that indicate sellers are exhausted, such as MicroStrategy’s modified NAV falling to 1.0, could signal a bottom for Bitcoin and the market.

Kendrick also recently reiterated his ambitious $200,000 year-end price target for Bitcoin.

*This is not investment advice.

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