Bitcoin briefly fell below $90,000 this week, marking its lowest level in seven months and sending shockwaves across the crypto market. Yet despite the downturn, two of the industry’s most respected analysts — Tom Lee, chairman of BitMine, and Matt Hougan, chief investment officer at Bitwise Asset Management — believe that Bitcoin may be days away from forming a market bottom.

In an interview with CNBC on Monday, Lee explained that the market remains unstable after the large-scale liquidation event on October 10, which triggered cascading sell-offs and heightened trader anxiety. He added that many investors are still on edge as they await clarity on whether the U.S. Federal Reserve will cut interest rates in December.

According to Lee:

“All of these factors are creating downside pressure. But the good news is we’re seeing signs of exhaustion. I spoke with Tom Demar from Demar Analytics, and he believes the indicators are signaling a bottom — potentially forming this week.”

Data from CoinGecko confirms that Bitcoin dropped to $89,458 on Tuesday, a price level last seen in April, before recovering modestly.

🌍 Why Bitcoin Is Weak: ETF Outflows, Whale Selling, and Geopolitical Stress

Earlier this week, several executives and market analysts told Cointelegraph that the recent sell-off was caused by a combination of macro and on-chain pressures, including:

• Significant outflows from spot Bitcoin ETFs

• Consistent selling from long-term holders and whales

• Rising geopolitical tensions across multiple regions

• Increased risk aversion in global financial markets

This confluence of factors has created one of the sharpest multi-week declines in Bitcoin since the first half of the year.

📉 Bitcoin Once Again Becomes the “Canary in the Coal Mine”

During a joint appearance on YouTube, both Tom Lee and Matt Hougan agreed that:

✔ Bitcoin was the first risk asset to turn downward

✔ Bitcoin will also be the first asset to bottom and reverse

Hougan went further, calling the current market environment a “generational opportunity” for long-term investors.

He explained that traders are uneasy due to:

• Concerns about the U.S. and global economy

• Doubts about whether AI valuations are sustainable

• Mixed sentiment around President Donald Trump’s new tariffs

• A general risk-off mood across equity and crypto markets

However, Hougan believes these concerns create opportunity rather than danger:

“Bitcoin was the first asset to roll over before the broader market pullback. It signaled the growing risk across all risk-on assets. And I believe it will be the first asset to bottom. We are very close. This is a tremendous buying opportunity for anyone with a 12-month or longer investment horizon.”

With both analysts in agreement — and with on-chain indicators flashing oversold conditions — the narrative of an impending market reversal continues to grow stronger.

📈 Current Price: Bitcoin Down 28% From October’s All-Time High

Bitcoin is currently trading around $90,718, down roughly 28% from its all-time high of more than $126,000 reached on October 6.

Such a decline is not unusual in historical bull cycles:

• In 2013, BTC fell 35% before hitting new highs

• In 2017, BTC fell 29% before doubling

• In 2021, BTC dropped 31% before surging again

• And across 2024–2025, multiple drawdowns of 20–25% have occurred

According to Lee, the current downturn fits a familiar pattern.

🚀 Tom Lee: Bitcoin Will Hit a New All-Time High Before Year-End

Despite the recent weakness, Tom Lee remains decisively bullish.

He argues that:

• U.S. equities are positioned for a strong rally into the end of the year

• A recovery in risk assets will lift Bitcoin

• The current consolidation phase is healthy

• And Bitcoin could reach a new all-time high before 2025 concludes

Lee explains:

“The first half of November weakness was expected. But as equities rally toward the end of the year, Bitcoin will follow. I think this will help propel Bitcoin to a new all-time high.”

His outlook reflects a broader belief shared across institutional desks:
once macro pressure eases and capital returns to risk assets, Bitcoin will be among the first to rebound.

🔍 Are We Really Near the Bottom? A Multi-Factor Market Analysis

To assess whether Bitcoin is close to forming a bottom, analysts point to several converging signals:

1. ETF Outflows Are Slowing

After heavy withdrawals in prior weeks, the pace of outflows has begun to soften — a historically bullish sign.

2. Whale Selling Pressure Is Declining

On-chain data from CryptoQuant and Glassnode shows that:

• Long-term holders have reduced net selling

• Exchange inflows from whales have stabilized

• Cohorts with 1 BTC+ are gradually accumulating

When whales stop selling, bottoms often form shortly after.

3. Fear & Greed Index Is Deep in “Extreme Fear”

Historically, Bitcoin has bottomed when sentiment reached:

• Maximum pessimism

• High volatility

• Elevated liquidations

Current readings match previous cycle lows in 2018, 2020, and 2022.

4. Technical Indicators Are Oversold

Metrics including:

• RSI (Relative Strength Index)

• MVRV Z-Score

• SOPR

• Funding rates

…are all hovering near historic bottom ranges.

5. Macro Conditions May Improve

If the Federal Reserve signals:

• A pause

• A future rate cut

• Or softening inflation data

Then Bitcoin could recover sooner than expected.

🔮 What Happens Next If This Is the Bottom?

If Bitcoin truly does bottom this week or the next, historical patterns suggest:

1. A Relief Rally of 20–40% Usually Follows

This occurred after bottoms in:

• 2018

• 2020

• 2022

• and early 2024

BTC tends to recover sharply before consolidating again.

2. Altcoins Will Lag Behind Bitcoin

Capital usually flows to BTC first, then rotates into altcoins 2–6 weeks later.

3. Leverage Will Reset

After liquidation events wash out overleveraged traders, Bitcoin typically enters a healthier growth phase.

4. Institutional Accumulation Grows

Professional investors historically increase exposure near major bottoms:

• ETF market makers

• Hedge funds

• Corporate treasuries

• Long-term whales

🧭 Conclusion: Bitcoin Is in the Final Stage of Its Correction — and a Reversal May Be Days Away

Even though Bitcoin has faced one of its sharpest pullbacks this year, top analysts such as Tom Lee and Matt Hougan maintain:

This is not the end of the bull cycle — this is the accumulation phase for long-term investors.

With:

• A 28% decline from all-time highs

• Weakening selling pressure

• Macro uncertainty priced in

• And technical indicators nearing bottom territory

The probability of a near-term market reversal is rising.

If Lee and Hougan are correct, Bitcoin may be on the verge of entering:

👉 One of the best long-term buying opportunities in recent years.