Bitcoin extended its November slump on Monday, briefly dipping under $90,000 for the first time in seven months, a level traders say carries psychological weight and reflects the market’s fragile mood. Despite the sell-off, several high-profile analysts believe a bottom could form within days, setting the stage for what some call a rare long-term buying opportunity.
Bitcoin touched lows near $89,650, according to market data, before recovering slightly to hover just under $90,000. The drop follows weeks of consistent pressure stemming from ETF outflows, shifting institutional positioning, and broader risk-off sentiment across global markets.
Analysts See “Signs of Exhaustion” in the Sell-Off
BitMine chairman Tom Lee said the market is still digesting the sharp liquidation event that rattled crypto traders in early October, with uncertainty around whether the U.S. Federal Reserve will cut rates in December adding further strain.
“There are growing signs that sellers are tiring,” Lee said in a Monday interview, adding that technical analysts he consulted expect a potential bottom to take shape later this week.
Bitwise CIO Matt Hougan echoed that view, calling current price levels a “generational opportunity” for long-horizon investors. According to Hougan, the recent retreat reflects wider anxiety around the economic outlook, lofty AI-sector valuations, and renewed concerns about U.S. tariffs under President Donald Trump.
“Bitcoin was the first asset to roll over ahead of this broader market pullback,” Hougan said. “I think it will also be the first to stabilize.”
Institutional Flows Deepen the Pressure
The sell-off has been accelerated by meaningful outflows from U.S. spot bitcoin ETFs, which have seen more than $3 billion in net withdrawals over the past three weeks. Analysts say institutional investors are rotating into cash, trimming exposure, or crystalizing gains before year-end, all of which is weighing on liquidity.
“Falling below $90,000 underscores just how fragile sentiment is right now,” said Rachael Lucas, crypto analyst at BTC Markets. “Institutional repositioning and profit-taking are leading the move.”
Short-term traders have also been unloading positions, though long-term holders appear largely unfazed, said Vincent Liu, CIO at Kronos Research. He noted that capital rotation and macroeconomic uncertainty, especially around the Fed’s upcoming interest-rate decision, continue to sap liquidity from risk assets.
Key Levels to Watch: $85K, $80K, and a Make-or-Break Zone
With bitcoin slipping below the $90K threshold, analysts now pinpoint $85,000–$87,000 as the next band of support. A deeper slide toward $80,000 is possible if bearish pressure continues, and breaking that level could open the door to February’s lows near $74,000.
The upcoming December Fed meeting remains the dominant catalyst. Markets currently assign roughly a 57% chance that the central bank won’t cut rates next month, a shift that has weighed on risk assets across the board.
Year-end tax positioning could also add volatility, while geopolitical headlines or tariff announcements may amplify short-term swings. On the upside, renewed government spending, now that the U.S. shutdown has ended, could ease liquidity constraints and offer some relief.
Looking Ahead: Pain Before a Rebound?
Despite the turbulence, both Lee and Hougan believe bitcoin may soon turn the corner. Lee even predicts a new all-time high by year-end if equity markets rebound as he expects.
Bitcoin is currently down about 28% from its October peak above $126,000, but bullish analysts maintain that the recent decline is more of a reset than a reversal of the longer-term trend.
“This is discomforting in the short term,” Hougan said, “but an exciting setup for anyone looking beyond the next few weeks.”
