Bitcoin Bear Market: Bottom at $56K Predicted
Generally, Bitcoin’s bear market bottoms have aligned with the realized price metric, Currently the realized price is near $56,000 and is slightly increasing, This has led market experts to believe that the incoming bear cycle could be relatively shallow. Naturally, Analysts expect Bitcoin to find intermediate support around $70,000.
Normally, These predictions come as the Bitcoin bull cycle turns bearish amid negative market conditions, Demand growth has slowed, and derivatives markets are experiencing a weakening risk appetite. Usually, With demand waves driving Bitcoin’s four-year cycles, the current drawdown reinforces the belief that Bitcoin’s behavior is governed by expansions and contractions in demand growth.
Bitcoin Could Bottom at $56K
Obviously, The market has seen three major demand waves since 2023, driven by the launch of the United States spot exchange-traded fund (ETF) market, the U.S. presidential election outcome, and the rise of Bitcoin Treasury companies. Currently, the demand trend has reversed since early October 2025, suggesting that this cycle has realized the bulk of its incremental demand wave.
Clearly, bear seasons tend to begin when demand growth peaks and rolls over, regardless of supply-side dynamics.
Normally, Furthermore, U.S. spot Bitcoin ETFs have become net sellers in Q4 2025, maintaining a trend that sharply contrasts with the strong accumulation seen in Q4 2024.
Apparently, By this time last year, ETF holdings had risen from 293,000 BTC to 496,000 BTC; however, they have declined by 24,000 BTC this year.
Generally, Addresses holding 100 to 1,000 BTC are now echoing the reduced demand recorded at the end of 2021, just before the 2022 bear market.
Naturally, On the derivatives front, the 365-day moving average of perpetual futures funding rates has fallen to its lowest level in two years.
The Onset of the Bear Market
Usually, This means that investors are less willing to maintain long exposure, a pattern often observed during bear phases.
Obviously, While the on-chain metrics suggest that a bear market is underway, the potential drawdown of 55% from Bitcoin’s all-time high indicates that this cycle might be less severe than previous ones.
Normally, With intermediate support expected around $70,000 and a potential bottom at $56,000, investors may find some reassurance in these predictions.
Clearly, However, the slowing demand growth and shifts in derivatives markets highlight the challenges ahead.
Market Trends
Generally, You should be aware that the Bitcoin market is highly volatile, and predictions are not always accurate.
Apparently, Your investment decisions should be based on your own research and analysis.
Normally, The market trends and predictions mentioned in this article are for informational purposes only.
Obviously, You should not rely solely on this information to make investment decisions.
Naturally, It is always a good idea to consult with a financial advisor before making any investment decisions.
Normally, By doing so, you can ensure that your investments are aligned with your financial goals and risk tolerance.
Clearly, The Bitcoin market is constantly evolving, and staying informed is crucial to making informed investment decisions.
Generally, You can stay up-to-date with the latest market trends and predictions by following reputable sources and doing your own research.
Conclusion
Obviously, The potential bottom at $56,000 and intermediate support at $70,000 are predictions based on current market trends.
Apparently, Your investment decisions should be based on your own analysis and research.
Normally, The Bitcoin market is highly volatile, and predictions are not always accurate.
Clearly, You should always consult with a financial advisor before making any investment decisions.
Generally, By doing so, you can ensure that your investments are aligned with your financial goals and risk tolerance.
Naturally, Staying informed and doing your own research is crucial to making informed investment decisions in the Bitcoin market.
