Bitcoin officially enters bear market after 20% drop from October high
Bitcoin has entered a bear market after a 20% drop from its October 2023 high. Elliott Wave analysts expect the bear market to last until late 2026, indicating a prolonged period of downward pressure. Recent price declines have reduced market leverage, potentially leading to continued volatility. Despite the downturn, some holders are accumulating Bitcoin, reflecting underlying buying interest amid concerns of a new crypto winter.
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Bitcoin Officially Enters Bear Market
Bitcoin has officially fallen into a bear market after a significant 20% drop from its October 2023 high. According to The Kobeissi Letter, the cryptocurrency has now crossed the threshold into bear market territory.
Elliott Wave Analysts' Forecast
Elliott Wave analysts predict that this bear market could last until late 2026. The analysis suggests an extended period of downward pressure, with Bitcoin facing challenging market conditions over the next few years.
Market Deleveraging and Its Impact
The recent price drop has removed excessive leverage from the market, according to blockchain analytics. While this deleveraging might seem like a healthy adjustment, it could open the door to continued volatility throughout the bearish phase.
Accumulation Amid the Downturn
Despite the broader market downturn, some Bitcoin holders have been accumulating during the price decline. This indicates underlying buying interest, even as concerns about a potential new crypto winter grow.