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Bitcoin is likely to fall below $100,000 before resuming its uptrend, Standard Chartered says.

Bitcoin has fallen as much as 19% below its record high of $126,200 over the past two weeks amid trade tensions between the U.S. and China. However, Standard Chartered Global Head of Digital Assets Research Geoffrey Kendrick has said that a further decline below $100,000 may be necessary for the asset to find a base.

“I am now thinking a dip below 100k seems inevitable, although the dump may be short-lived,” Kendrick said in an Oct. 22 note.

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“Stay nimble and ready to buy the dip below 100k if it comes,” he added. “It may be the last time Bitcoin is EVER below 100k.”

Kendrick said he is looking at three signals for evidence of a resumption of Bitcoin’s uptrend. The first signal is a potential rotation of capital from gold into Bitcoin. He cited the Oct. 21 gold crash that coincided with a rise in Bitcoin, adding that a continuation of the trend in the medium term could signal a Bitcoin bottom.

Kendrick also said that he was looking at liquidity measures. He said these metrics were tightening, noting that potential Federal Reserve intervention could be positive for Bitcoin.

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At the same time, Kendrick said he was watching for a bounce at Bitcoin’s 50-week moving average. He highlighted that the indicator has held as support since early 2023, when Bitcoin traded at $25,000.

Kendrick is not the only analyst to remain optimistic about Bitcoin’s prospects despite the recent market correction. Bitwise investment chief Matt Hougan in an Oct. 21 memo urged Bitcoin investors to be patient, comparing the digital asset’s run to that of gold.

Hougan said gold was on a tear this year, primarily due to central bank buying. However, he noted that central banks started accumulating in 2022 with minimal price movement. He said the lack of significant price reaction was the result of “price sensitive” investors selling into the rally, noting that the difference this year was the exhaustion of sellers.

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He said Bitcoin was seeing strong demand from exchange-traded funds and corporations, but had seemingly yet to experience a rally commensurate with that demand. He added that, like gold, there would have to be an exhaustion of price-sensitive Bitcoin investors before it could rip.