This week, Bitcoin sinks under $90k, sparking new speculation about whether the market is nearing a cyclical low. Executives from BitMine and Bitwise told Cointelegraph that multiple on-chain indicators suggest that the downward trend is slowing.
The world’s largest cryptocurrency fell for the second time in three weeks as miners sold, spot ETF inflows fell, and global markets became more risk-averse. Analysts note that, while the market has retreated, the current conditions are comparable to those observed in previous cycles when Bitcoin reached its low point.
Mining Costs Near Parity With Bitcoin Price
BitMine’s head of research noted that mining production costs are beginning to align with Bitcoin’s current trading range, which is a classic indicator that miners may soon capitulate or reduce selling pressure.
“Historically, whenever Bitcoin trades close to the global average mining cost, we see an accumulation range forming,” the company’s boss said. “We believe the market could stabilize and attempt a rebound before the end of the week.”
BitMine’s data also indicates a slight decline in the network hash rate, typically associated with short-term miner stress. This means that miners dealing with higher energy prices may temporarily turn off equipment, lowering selling pressure and setting up a future reversal.
Bitwise Says Sentiment Is Near Extreme Lows
Meanwhile, Bitwise’s portfolio strategist told Cointelegraph that the market is experiencing “extreme fear” levels not seen since early 2024. This sentiment surrender, combined with oversold technicals, may indicate a bottom is forming.
“Bitcoin ETF flows have slowed but have not turned significantly negative,” the Bitwise CEO said. “This is more consistent with consolidation than a sustained downtrend.”
According to the analyst, institutional buyers frequently intervene during times of heightened panic, particularly around long-term support regions formed following major rallies.
Macro Pressure Still Weighing on the Market
Despite these optimistic signs, macroeconomic headwinds continue to weigh on cryptocurrency. Treasury yields remain high, global liquidity has tightened, and investors are waiting for several key economic reports this week. These characteristics have traditionally caused volatility in Bitcoin.
However, economists emphasize that such macro-driven pullbacks are frequently brief within bull cycles. If Bitcoin remains above the mid-$80,000 level, traders may expect a quick recovery.
Is This the Bottom? Market Eyes Key Levels
Technical traders are closely monitoring the $88,000-$92,000 price range. Losing this area may result in additional losses toward $84,000, whilst regaining $93,000 may initiate a rally back toward $95,000 and higher.
Market experts also point out that long-term investors continue to accumulate, which often strengthens price floors.
While uncertainty abounds, both BitMine and Bitwise executives believe that this week may mark a temporary bottom, particularly if selling pressure continues to ease and ETF flows settle.
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