Bitcoin opened the week under pressure, tumbling alongside altcoins before stabilizing near $112,000.
Ethereum also found footing around $4,200 after the sell-off. The modest rebound has calmed some nerves, but according to CryptoQuant analyst Axel Adler, the bounce is unlikely to mark the start of a renewed uptrend.
Adler explained that the market’s structure has shifted decisively toward the bears. He pointed to the Composite Index – a technical indicator that tracks momentum shifts – which has dropped below the -0.4 level. Historically, this reading suggests sellers are still firmly in control. In his view, the recent stabilization is less a bullish reversal and more a corrective phase offering temporary relief.
The analyst described current price action as a “cathartic rally,” meaning a short-lived recovery that follows heavy selling but fails to alter the overall trend. “The market has moved into corrective mode,” Adler said, emphasizing that the pattern aligns more with consolidation under bearish dominance than with the start of a rally.
Still, he highlighted one level traders should watch closely: $109,500. Adler believes this support will determine whether Bitcoin can regroup. If BTC holds above that threshold and the Composite Index climbs back above zero, the market could regain enough strength to retest the $117,700 resistance zone. Such a move would signal that buyers are gradually reclaiming momentum.
Until then, Adler warned against assuming the worst is over. With the broader trend still tilted downward, short-term recoveries should be treated with caution. In his outlook, the next few days will be pivotal in determining whether Bitcoin can break out of corrective mode or slide further toward lower support levels
