Bitcoin (BTC-USD) hovered near $69,000 on Tuesday as one analyst suggested the cryptocurrency may be approaching a bottom after a recent sell-off.

“We believe crypto markets are in the early phases of bottoming out following last week’s record capitulation,” Compass Point analyst Ed Engel said in a note Monday night.

Engel pointed to roughly $10 billion in realized losses locked in by investors last week, the second-highest total on record since June 2022.

“These massive capitulation events typically occur in the final stages of a sell-off,” he said.

Still, Engel cautioned that crypto downturns rarely produce V-shaped recoveries, warning that bitcoin could retest the $60,000 level and potentially dip as low as $55,000.

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