Market Downturn and Bitcoin's Performance
Leading cryptocurrency Bitcoin (BTC) fell to a seven-month low on Monday, extending a weeks-long correction as confidence in the cryptocurrency market continues to deteriorate. At this point, Bitcoin has fallen below $90,000, down 5.8% in the last 24 hours. BTC has erased all of its gains from 2025 and is down nearly 27% from its all-time high just over a month ago.
Analyst Perspectives on a Potential Bottom
However, as Bitcoin's losses continue to mount, some analysts say the possibility of a near-term bottom is increasing. At this point, Bitfinex analysts analyzed that this correction is the third largest since 2023, but the recent increase in Bitcoin's realized losses has slowed and the market is approaching a short-term bottom. Analysts pointed to a possible bottom, noting that the current pace of selling and the magnitude of realized losses experienced by investors are beginning to stabilize.
Bitfinex analysts said this data suggests the market may be entering a consolidation phase rather than a prolonged capitulation and is approaching a bottom.
“Historically, sustainable lows have only occurred after short-term investors gave up.
Based on current flows, the market appears to be approaching this threshold once again.
At this point, the short-term recovery and bottom will depend on whether short-term investors capitulate and the remaining selling pressure dissipates.”
Technical Indicators for Recovery
Apart from Bitfinex, senior analyst James van Stratten also said that the correction met the conditions for a structural bottom. He noted, “CME Bitcoin futures opened at $93,840, leaving an unfilled gap in the $91,970 region. If the price tests this gap and supply and demand stabilize, conditions for a recovery could be created.”