Bitcoin’s $60,000 Dip: Is This the Bottom or Just the Start of a Deeper Bear Market?

• Bitcoin’s $60K dip raises concerns over a potential prolonged downtrend.
• Analysts warn Bitcoin’s correction may lead to a deeper market slump.
• Will Bitcoin regain momentum soon, or face a prolonged bear market?

Bitcoin’s recent price plunge has sparked intense debate among analysts, with some suggesting that the dip to $59,930 could be a critical turning point in the current bear market. According to Kaiko’s latest research, the 32% correction marks the lowest point for Bitcoin since October 2024, just before the re-election of US President Donald Trump. This significant decline has led experts to question whether Bitcoin has already hit its bottom or if this is just the beginning of a more severe downturn.

Kaiko’s report argues that the market has moved past the post-halving euphoria and entered a typical bear market phase, which generally lasts around 12 months before a new accumulation phase takes hold. The analysis of on-chain metrics shows that Bitcoin is approaching critical technical support levels. These levels are crucial in determining whether the historical four-year halving cycle will remain intact, or if this cycle will deviate from expectations.

Additionally, Kaiko’s report highlights a 30% drop in aggregate spot crypto trading volume across the 10 leading centralized exchanges, from around $1 trillion in October 2025 to $700 billion in November. Furthermore, the combined open interest in Bitcoin and Ether futures has fallen by 14%, indicating that deleveraging is ongoing across the market.

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A Bear Market or a Local Bottom?

Despite the correction, some market participants remain optimistic about Bitcoin’s future. Experts like Shawn Young, chief analyst at MEXC Research, believe that the catalysts behind Bitcoin’s previous rally to $126,000 are still at play. However, with oversold indicators emerging, there is speculation that Bitcoin’s recovery could be imminent.

The key question now is whether the $60,000 mark represents the bottom of the bear market. This price point aligns with Bitcoin’s 200-week moving average, which has historically served as a long-term support level. While this offers hope to some investors, others remain skeptical, with Nicolai Sondergaard from Nansen pointing out that it’s difficult to predict whether Bitcoin will follow its usual four-year cycle.

Kaiko’s research also suggests that the 52% retracement from Bitcoin’s previous all-time high is relatively shallow compared to prior cycles. Historically, Bitcoin has seen retracements of 60% to 68% during bear markets, which could indicate that the true bottom might lie closer to the $40,000 to $50,000 range. However, Bitcoin may have already found its local bottom at $60,000, showing a record-low investor sentiment and an oversold Relative Strength Index (RSI).

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