Several well-known analysts point out that the decline in Bitcoin (BTC) may not be over yet. By their estimates, the market is in for a final wave of selling, after which a foundation for sustained growth could form.

Two factors are at the heart of the discussion: the end of the forced reduction of leveraged positions and a sharp weakening of demand from major institutional buyers. At the same time, some analysts already see the first signs of an upcoming reversal. The trigger for the discussion was the recent market situation. Strategy sold part of its bitcoins for the first time since 2022, while exchange-traded funds recorded capital outflows for several days in a row, depriving the market of its usual support.

Michael Nadeau: another decline lies ahead

Michael Nadeau, founder of the analytical project The DeFi Report, believes that the reduction of leveraged positions has, for the most part, already played out for Bitcoin and the largest coins. However, in his words, there are still assets where this process has so far passed by.

Among the examples Nadeau names HYPE, ZEC and NEAR. In his view, these are precisely the ones that will be next in line for a decline, although he does not undertake to name either the catalyst or the timing.

As for the further development of the situation, Nadeau expects Bitcoin's dominance to grow against the backdrop of overall market weakness. He describes the scenario as follows: another decline, followed by a period of quiet and apathy, and only then the emergence of an impulse for a lasting bullish mood.

Darkfost: demand has fallen to a minimum

The analyst Darkfost draws attention to the weakness of spot demand. According to his data, this demand increasingly depends on two sources — the company Strategy and Bitcoin exchange-traded funds.

The problem is that Strategy has noticeably cut back its purchases and recently even carried out a sale of bitcoins. Exchange-traded funds, meanwhile, are recording capital outflows week after week, and as a result the average monthly level of spot demand has fallen into negative territory.

Source: BeInCrypto