Bitcoin Price Analysis: BTC Slumps Below $90,000, But Market Expects Bottom This Week

Bitcoin (BTC) slipped below $90,000 for the first time in seven months as it plunged to an intraday low of $89,183 on Tuesday before reclaiming $90,000 and moving to $91,413. 

Analysts and market experts believe Bitcoin and the cryptocurrency market could hit a bottom as early as this week. Meanwhile, on-chain data has revealed that Bitcoin whales are buying as retail traders dump their holdings, with market sentiment in “extreme fear” territory. 

El Salvador Buys The Dip 

El Salvador has consistently bought Bitcoin during the market downturn, ensuring it maintains its accumulation strategy. The Central American country added 1,091 BTC on Tuesday, worth nearly $100 million. President Nayib Bukele posted a screenshot of the purchase on X, showing the country’s Bitcoin holdings. El Salvador has purchased 1,098.19 BTC over the past week, taking its total holdings to 7,474.37 BTC, worth $688 million. 

André Dragosch, financial analyst and European Head of Research at Bitwise, stated that sovereign nation states are buying the dip, and El Salvador’s calculated purchases indicate a long-term strategy to enhance its reserves. Stacy Herbert, Director of El Salvador’s Bitcoin office, stated, 

“Bitcoin is the opposite of government control. President Bukele has embraced it as a legal tender not to consolidate power, but to distribute it.”

Crypto ETPs Register Largest Outflows Since February 

Crypto investment products have recorded their largest weekly outflows since February, as investors withdrew over $2 billion amid a decline in risk appetite. Last week’s outflows recorded a 71% increase from the $1.17 billion recorded the week prior, and mark the third consecutive week of outflows, taking the cumulative net outflows to $3.2 billion. James Butterfill, CoinShares’ head of research, believes the outlaws are linked to uncertainty around monetary policy and heavy selling by crypto-native whales. Total assets under management (AUM) in crypto ETPs have declined from $264 billion to $191 billion, a 27% decline. 

CoinShares also highlighted that while single-asset ETPs registered sharp outflows, multi-asset ETPs have recorded substantial inflows. Multi-asset ETPs have recorded $69 million in net inflows over the past three weeks, as investors seek to reduce exposure to volatility amid market uncertainty. 

Bitcoin (BTC) Price Analysis 

Bitcoin whale wallets have spiked as markets struggle with the latest downturn. Prices fell to multi-month lows, with the flagship cryptocurrency slipping below $90,000 for the first time in seven months. According to data from Glassnode, Bitcoin whales have been accumulating since late October, with a substantial spike in whale wallets holding over 1,000 BTC since Friday. Whale wallets fell to a yearly low of 1,354 on October 27. However, this rose 2.2% on Monday, reaching 1,384. 

Glassnode data also reveals that smaller holders are feeling the pressure, declining from 980,557 on October 27 to a yearly low of 977,420 on November 17. Markus Thielen stated that there is still some whale selling ongoing, adding that the October 19 FMOC meeting has had a significant impact on the market. 

“His message decisively broke the fragile balance that had existed between market sellers and buyers – between the OG mega whale sellers (1,000-10,000 BTC) and the whale buyers (100-1,000 BTC). Super-whales and mega-whales are absorbing some of the whale selling, but the 30-day net-flow ratio between these cohorts still shows decisive net selling.”

BitMine chairman Tom Lee and Bitwise Asset Management chief investment officer Matt Hougan, BTC, and the crypto market could hit a bottom this week. BTC fell to its lowest level in over seven months, with Lee stating that the cryptocurrency market is suffering after October’s liquidation event, and buyers are still unsure about whether the Federal Reserve will cut interest rates in December. Lee stated during an interview, 

“I think that’s all creating this downside pressure. But I think the good news is that there are signs of exhaustion. I did speak with Tom Demar of Demar Analytics, and he thinks some signs would look like a bottom that could be occurring sometime this week.”

Hougan struck an optimistic note, stating that with the market bottom approaching, long-term holders have a “generational opportunity” to purchase more BTC at low prices. He also highlighted investor uncertainty about the economy, artificial intelligence valuations, and tariffs as possible causes of the ongoing market decline. 

“I think we’re nearing the bottom. I look at this as a great 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.”

BTC ended the previous weekend in positive territory, rising over 2% and settling at $104,694. The price continued pushing higher on Monday, rising 1.23% to cross $105,000 and settle at $105,979. BTC reached an intraday high of $107,482 on Tuesday. However, it lost momentum as bear market conditions set in. As a result, it fell nearly 3% and settled at $103,009. Sellers retained control on Wednesday as the price fell 1.33% to $101,639.

Source: TradingView

BTC faced substantial selling pressure and volatility on Thursday. As a result, it slipped below the crucial $100,000 mark, falling to a low of $97,870 before settling at $99,614. Selling pressure intensified on Friday as the price plunged over 5%, falling to a low of $93,951 before settling at $94,503. Despite the overwhelming selling pressure, BTC recovered on Saturday, rising 1.10% to reclaim $95,000 and settling at $95,544. Selling pressure returned on Sunday as BTC fell to a low of $92,943 before settling at $94,183, ultimately dropping 1.42%. Bearish sentiment persisted on Monday as the price fell by over 2% and settled at $92,100. The flagship cryptocurrency plunged to an intraday low of $89,183 during the ongoing session. However, it has reclaimed $91,000 and is trading around $91,589.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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