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The market upheaval on October 10-11 has significantly disrupted the prevailing optimism in the cryptocurrency market. Geoffrey Kendrick, Standard Chartered’s Director of Digital Asset Research, recently stated that Bitcoin’s dip below $100,000 was unavoidable in the short term. Just three weeks prior, the bank had indicated that a surge to $135,000 was imminent. However, the subsequent trade tensions between the US and China triggered a selling wave, swiftly driving prices down from an October 6 peak of $126,000. “The October 10 sell-off completely halted the upward momentum. The real question now is where Bitcoin 
$103,176 will bottom out,” Kendrick remarked.
Identifying Bottom Signals in the Market
According to Kendrick, this retracement is expected to be temporary, potentially serving as a final buying opportunity for long-term investors before a new bullish phase commences. He identifies three pivotal elements that could restore stability to the cryptocurrency market.
The first is capital flows between gold and Bitcoin. Kendrick noted that recent gold sales coincided with Bitcoin’s short-term recovery, suggesting that a stronger transition from the gold market to cryptocurrency could signal a bottom for Bitcoin.
The second key factor is the liquidity policy of the US Federal Reserve (Fed). Kendrick observed increasing signals that the Fed might halt its monetary tightening. Improvements in liquidity conditions could pave the way for Bitcoin to gain bullish ground once again.
Lastly, Kendrick turned to technical indicators. He pointed out that Bitcoin has managed to remain above its 50-week moving average since the start of 2023. Maintaining this technical strength implies that the long-term upward trend persists. Kendrick reminded investors to view short-term drops as buying opportunities rather than a cause for panic.
According to Kendrick, the current downturn might offer the purchasing opportunities at historically low levels that investors have long been waiting for.
Anticipating Bitcoin’s Long-term Price Surge
In a previous note released earlier this month, Kendrick had set a year-end target of $200,000 for Bitcoin. During that period, he highlighted the potential risk of a US government shutdown, the rise in bond yields, and robust inflows into spot ETFs. Despite the short-term outlook’s increased correction potential, Kendrick remains confident in the continuation of the long-term upward trend.
