If historical trends are any indication, the world's largest cryptocurrency, Bitcoin, may still face significant declines ahead. Analysts from the globally recognized independent macro and market strategy research firm Ned Davis Research recently indicated in a client report that despite substantial selling over recent months, Bitcoin still holds potential for further downside.

According to Pat Tschosik, the firm's chief thematic strategist, and analyst Philippe Mouls, if the current bear market evolves into a full-blown "crypto winter," Bitcoin's price could fall to $31,000. Bitcoin is currently trading near $69,000, having already dropped approximately 45% from its peak of around $126,199 in October of last year. A further decline to $31,000 would represent an additional 55% drop from current levels.

Tschosik and Mouls explained that their analysis of Bitcoin's historical downturns suggests that if the current sell-off escalates into a crypto winter, the cryptocurrency could experience a peak-to-trough decline of 70% to 75%. The firm noted that in past Bitcoin winters dating back to 2011, the average decline has been around 84%.

The analysts added that crypto winters have historically lasted an average of 225 days. In the current downturn, only 129 days have passed since Bitcoin peaked in early October of last year. However, they also cautioned that a crypto winter is not inevitable, as Bitcoin now benefits from greater institutional buyer participation compared to the past, which could help stabilize its price.

They stated, "We can observe that the severity of declines in past crypto winters or major bear markets has been gradually diminishing, and we expect this trend to continue."

Bearish sentiment has been growing in recent weeks as Bitcoin's decline accelerates. Geoffrey Kendrick, head of digital assets research at Standard Chartered, said on Thursday that he expects digital asset prices to face further pressure in the coming months. He projected that if selling pressure persists, Bitcoin could fall to $50,000 or lower.

John Blank, chief strategist at Zacks Investment Research, recently suggested that Bitcoin may decline to $40,000, noting that crypto winters have historically lasted over a year on average. Last week, Stifel forecast that the current downturn could push Bitcoin toward $38,000.