Bitwise Sees Another 20% Drop in Bitcoin Before True Market Bottom

Bitwise, one of the largest cryptocurrency-focused investment firms in the United States, warns that Bitcoin's correction may not be over yet. Analysts at Bitwise believe that the market could still drop another 20% before reaching a true bottom.

In their latest assessment, Bitwise points out that most major on-chain indicators have not yet reached the levels typically associated with previous market lows. While some early signs of bottom formation are emerging, conditions may be improving but do not yet suggest a definitive bottom has been established.

Bitwise highlights several key price levels that investors should monitor during the current correction. The first major support zone is around $61,000, which corresponds to Bitcoin's 200-week moving average. Historically, this level has acted as one of the most important long-term support indicators in the asset's history.

The second critical level is near $56,000, representing Bitcoin's realized price. This metric measures the average price at which coins last changed hands on-chain and is often considered one of the most meaningful valuation tools in cryptocurrency analysis. When Bitcoin trades near or below its realized price, it suggests that a large portion of market participants are either at breakeven or holding unrealized losses.