Current state of the cryptocurrency market
The cryptocurrency market in 2022 has experienced a significant correction, caused by general macroeconomic instability, reduced liquidity, and the withdrawal of retail investors. The leading cryptocurrency, bitcoin, has collapsed by more than 70% from its historical highs.
The CryptoQuant analytical platform, which specializes in the study of blockchain data, believes that the process of 'capitulation' of bitcoin has not yet been completed. According to them, key on-chain indicators are in a bear, not an extremely bear phase, which suggests that bitcoin has not yet reached its 'ultimate' bear market bottom.
Forecast for the bitcoin bottom
CryptoQuant analysts believe that the 'ultimate' bottom of the bitcoin bear market could be around the $55,000 mark. This is significantly higher than the current values ($16,500 as of November 24, 2022), but lower than the historical highs around $69,000 reached in November 2021.
However, one cannot rule out further decline in bitcoin in the event of a deterioration in the macroeconomic situation and a stronger outflow of investors from the cryptocurrency market. Analysts recommend that traders and investors exercise caution and not rush to make decisions.