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Bitcoin will ‘take around 10 months to fully recover,’ says report – Here’s why

Is Bitcoin’s current drawdown normal compared to past market cycles?

Bitcoin will 'take around 10 months to fully recover,' says report - Here's why

Bitcoin [BTC] was trading at $75,879.22 after a drop of 1.1% in the past 24 hours. Even though this seems to be a brief decline, the bigger picture indicates that the leading cryptocurrency has failed to reach the October 2025 ATH in six months.  

Remarking on the same, Ecoinometrics noted, 

The current Bitcoin drawdown is about 8 months old. History suggests drawdowns of this size typically take around 10 months to fully recover.

Bitcoin drawdown
Source: Ecoinometrics/X

All about Bitcoin’s drawdown

This indicates that, at least historically, the current decline in the price of Bitcoin is quite normal in comparison to past market cycles.

For context, a 10% correction could be recovered in a few weeks, while a 30% to 40% drawdown could take months. However, it can take years for bear markets to recover from declines of 70% or more. 

This is due to a number of factors, including the need for additional time for the recovery of leveraged positions, liquidity, and investor confidence. 

What does this mean for Bitcoin? 

All things considered, this indicates that BTC has not yet reached its bottom. It may therefore still be in a consolidation phase rather than being on a new uptrend.

Ecoinometrics added

So the fact Bitcoin is still deep in this drawdown isn’t a out of line. The deeper the drawdown, the longer the recovery.

This was further validated by an analyst who said

The Bitcoin volatility has gone down massively.

Considering this, the analyst calls for Bitcoin to break above $80K to gain more strength and liquidity.  

Is Bitcoin signaling bullish or bearish sentiment? 

A recent analysis by CryptoQuant also indicated that a significant divergence has begun to appear since 2025. Bitcoin’s price fluctuations have been noticeably greater than those of the S&P 500, which has stayed comparatively steady.

This trend was confirmed by the Bitcoin Spot Taker CVD indicator, which shows that aggressive spot buying has not yet established itself as a consistent dominant force, as it did during prior significant rallies.

Strong Spot Taker CVD
Source: CryptoQuant

Additionally, AMBcrypto previously stated that Bitcoin faces a $14 billion liquidation risk. While weaker spot demand casts doubt based on dip buying, heavy long positions below price may lead to liquidations.

Yet, despite the escalating tensions in the Middle East, Bitcoin has remained strong, as confirmed by Bitcoin’s monthly returns, which were positive for three consecutive months. 

Bitcoin's monthly returns
Source: CoinGlass

Final Summary

  • Bitcoin’s current drawdown, which is eight months old, is strong as compared to past market cycles.
  • The Spot Taker CVD indicator suggests Bitcoin is weak, but its monthly returns suggest that the overall sentiment remains strong. 
Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.

Ishika Kumari

Journalist

Ishika Kumari is a Crypto Analyst at AMBCrypto, specializing in regulatory developments, market dynamics, and blockchain’s real-world impact. She breaks down complex protocols and legislation into practical, easy-to-understand insights.

AMBCrypto was founded in 2018 with a mission to simplify and bring the latest blockchain and cryptocurrency news to our readers. We have quickly grown into the digital news source for an emerging generation of cryptocurrency enthusiasts, reaching more than a million readers on a monthly basis, across the globe.