BitMine chair Tom Lee and Bitwise Asset Management CIO Matt Hougan have suggested that Bitcoin (BTC) could be nearing a bottom, potentially as soon as this week.
This comes as Bitcoin extended its downtrend today, plunging to a seven-month low during early Asian trading hours.
Could Bitcoin Be Ready to Bounce Back?
Earlier today, Bitcoin dropped below $90,000, deepening an over two-month-long decline that has erased its gains for 2025. The flagship cryptocurrency now sits 29% below its all-time high (ATH) of October 6.
At press time, it traded at $89,973, having suffered a 5.47% daily loss. The correction has shaken market confidence and pushed market sentiment into extreme fear.
Bitcoin (BTC) Price Performance. Source: BeInCrypto Markets
BitMine’s Chairman, Lee, explained that the recent decline in the cryptocurrency market is largely tied to two major factors. The first is a massive liquidation event on October 10. He described it as the largest of its kind in the industry’s history.
The second is growing investor anxiety ahead of the Federal Reserve’s December meeting. Because crypto is viewed as a risk-on asset, any hint of a hawkish tone from the Fed tends to rattle sentiment and push prices lower.
Despite the pressure, Lee noted that there are emerging signs the sell-off may be losing steam. The executive told CNBC that,
“I think the good news is there are signs of exhaustion. I did speak with Tom Demark of Demark Analytics and you know he thinks there are signs that would look like a bottom that could be occurring sometime this week.”
Bitwise’s Hougan shared this view, saying he “exactly” agrees with Lee’s assessment. He added that, from his perspective, the recent downturn represents a strong buying opportunity for long-term investors.
“Bitcoin was the first thing to turn over before this broader market pullback. It was sort of the canary in the coal mine signaling that there was some risk in all sorts of risk on assets. I think it’ll be the first thing to bottom and I agree with Tom. We’re getting very close to that point. So, I think it’s an exciting opportunity again for people who are looking out a year or more into the future,” he remarked.
On-chain and technical metrics support the case for a potential bottom formation. Earlier this month, BeInCrypto reported that more than 28% of Bitcoin’s circulating supply was held at a loss.
Historically, such high levels have marked market bottoms. Net Taker Volume was also flashing a similar signal. Moreover, a death cross has appeared on BTC’s chart, as the 50-day moving average has fallen below the 200-day moving average.
“We all know a ‘death cross’ usually signals the start of something bearish. But ironically, when using the 50-day and 200-day MA, this cross has consistently marked Bitcoin’s major bottoms, in 2023, 2024, and earlier this year. Not saying we’ll shoot straight to new highs from here, but if history repeats, the local bottom should be in, and a recovery pump might be just around the corner,” an analyst stressed.
Whether a bottom forms soon or after a period of consolidation, several technical and historical signals suggest that this correction may be nearing an end. Exactly when the market will confirm that shift, however, remains uncertain.
