Bitcoin Plunges Toward $87K: Market Experts Forecast Potential Reversal This Week

Bitcoin’s recent collapse has stirred debate among leading analysts about an imminent market turning point. Industry veterans from BitMine and Bitwise are signaling that investors may have reached the critical juncture they’ve been waiting for.

Expert Predictions Signal Potential Market Pivot

Tom Lee of BitMine and Matt Hougan of Bitwise Asset Management have both gone on record suggesting that a market bottom could materialize within days. Speaking during a Monday appearance on CNBC, Lee attributed the ongoing weakness to dual pressures: a major liquidation cascade on October 10 and lingering uncertainty about U.S. Federal Reserve decisions on rate cuts expected in December.

“The market is experiencing significant selling pressure,” Lee explained, “yet technical indicators are beginning to show signs of exhaustion—a pattern that typically precedes recoveries.” He referenced conversations with leading analytics specialists who are identifying potential reversal signals at current price levels.

Current Market Conditions and Price Action

Bitcoin has experienced a substantial downturn, with prices touching $87.61K based on the latest market data—a level not seen since April’s decline. The cryptocurrency market has endured headwinds from multiple directions: significant redemptions from investment vehicles, substantial selling pressure from institutional holders, and geopolitical uncertainties adding to market sentiment concerns.

The convergence of these factors has created what Hougan describes as a rare opportunity window. “We’re approaching what could be a generational buying opportunity for long-term portfolio builders,” Hougan observed, highlighting that current valuations reward patience over panic.

Recovery Prospects and Year-End Outlook

Lee remains convinced that Bitcoin will rebound substantially before 2024 concludes, potentially establishing fresh record highs if broader equity markets experience the anticipated rally. The correlation between stock market performance and Bitcoin’s trajectory suggests that a rebound in traditional markets could catalyze significant cryptocurrency gains.

“My outlook for equities as we approach year-end is decidedly constructive; a stock market rebound will almost certainly lift Bitcoin’s performance as well,” Lee concluded. Market participants tracking USD valuations and emerging market considerations, including INR-denominated crypto exposure, are watching this technical level closely as a critical test of market resilience and a potential forecast indicator for subsequent recovery phases.

The perspectives from these established industry figures suggest that current market conditions, while painful in the short term, may represent exactly the type of accumulation opportunity that separates long-term wealth builders from reactive traders.