Bitcoin has reached its highest oversold level in over two years, but hopes for growth are severely limited. Some altcoins have fallen to levels seen during the previous bear market.

CryptoQuant CEO Kim Young-Joo emphasized that, from a technical perspective, the bullish phase ended earlier this year, when Bitcoin first broke $100,000. To form a cyclical bottom, the cryptocurrency will need to return to its realized price of around $56,000.

"However, given that players like Strategy are unlikely to sell their assets, and their coins have effectively been withdrawn from the market, I doubt we'll see Bitcoin at $56,000."