Is This Week the Turning Point for Bitcoin? Tom Lee and Matt Hougan Say a Bottom Is Near
BitMine chair Tom Lee and Bitwise Asset Management CIO Matt Hougan have recommended that Bitcoin (BTC) could possibly be nearing a backside, doubtlessly as quickly as this week.
This comes as Bitcoin prolonged its downtrend at this time, plunging to a seven-month low throughout early Asian buying and selling hours.
Could Bitcoin Be Ready to Bounce Back?
Earlier at this time, Bitcoin dropped below $90,000, deepening an over two-month-long decline that has erased its positive aspects for 2025. The flagship cryptocurrency now sits 29% beneath its all-time high (ATH) of October 6.
At press time, it traded at $89,973, having suffered a 5.47% day by day loss. The correction has shaken market confidence and pushed market sentiment into excessive fear.
BitMine’s Chairman, Lee, defined that the current decline in the cryptocurrency market is essentially tied to 2 main components. The first is a massive liquidation event on October 10. He described it as the largest of its variety in the trade’s historical past.
The second is rising investor nervousness forward of the Federal Reserve’s December meeting. Because crypto is considered as a risk-on asset, any trace of a hawkish tone from the Fed tends to rattle sentiment and push costs decrease.
Despite the strain, Lee famous that there are rising indicators the sell-off could also be shedding steam. The govt instructed CNBC that,
“I feel the excellent news is there are indicators of exhaustion. I did converse with Tom Demark of Demark Analytics and you recognize he thinks there are indicators that may appear like a backside that could possibly be occurring someday this week.”
Bitwise’s Hougan shared this view, saying he “precisely” agrees with Lee’s evaluation. He added that, from his perspective, the current downturn represents a robust shopping for alternative for long-term investors.
“Bitcoin was the very first thing to show over earlier than this broader market pullback. It was form of the canary in the coal mine signaling that there was some threat in all kinds of threat on property. I feel it’ll be the very first thing to backside and I agree with Tom. We’re getting very near that time. So, I feel it’s an thrilling alternative once more for people who find themselves searching a 12 months or extra into the future,” he remarked.
On-chain and technical metrics assist the case for a potential backside formation. Earlier this month, BeInCrypto reported that greater than 28% of Bitcoin’s circulating provide was held at a loss.
Historically, such high ranges have marked market bottoms. Net Taker Volume was additionally flashing a comparable sign. Moreover, a death cross has appeared on BTC’s chart, as the 50-day transferring common has fallen beneath the 200-day transferring common.
“We all know a ‘dying cross’ normally alerts the begin of one thing bearish. But mockingly, when utilizing the 50-day and 200-day MA, this cross has constantly marked Bitcoin’s main bottoms, in 2023, 2024, and earlier this 12 months. Not saying we’ll shoot straight to new highs from right here, but when historical past repeats, the native backside must be in, and a restoration pump is likely to be simply round the nook,” an analyst stressed.
Whether a backside varieties quickly or after a interval of consolidation, a number of technical and historic alerts recommend that this correction could also be nearing an finish. Exactly when the market will verify that shift, nevertheless, stays unsure.
The publish Is This Week the Turning Point for Bitcoin? Tom Lee and Matt Hougan Say a Bottom Is Near appeared first on BeInCrypto.
