The Crypto Bloodbath Stalls: Is a Bottom In?

The relentless crypto bloodbath appears to have finally stalled, and signs suggest the market may have already posted a definitive bottom.

Bearish acceleration had driven prices to stark troughs, with Bitcoin grazing the $80,000 level and altcoins suffering even steeper declines. XRP plunged below $2.00, Ethereum tested levels near $2,800, and Solana dropped to trade near $125.

Read More: Altcoins make new lows, Total Market Cap falls below the 2021 record

However, as key technical areas and Fibonacci retracements triggered interest from both opportunistic investors and algorithms, dip-buying has brought the Crypto Market higher to start the week. Bitcoin is now testing the $88,000 level, while Ethereum is climbing back towards the $3,000 psychological level.

Crucially, institutional flows are signaling a shift. Bitcoin and Ethereum ETFs are seeing their first renewed inflows after a painful 6-week streak of net outflows that reflected general deleveraging across digital assets.

The Total Market Cap, which posted lows around $2.74T just last Friday, is also staging a recovery.

Buoyed by a broadly more positive mood in markets—fueled by a dovish repricing for the Fed's December meeting, strong beats on Nvidia earnings, and potential trade reopening talks with China —the total valuation is once again breaking back above the pivotal $3T mark.

This level will be extremely important to hold as it equates to the 2021 Bull Market peak.

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A ruthless 37% descent for the pioneer Crypto has taken a break as multiple confluences of Technical Supports are coming through.

The 61.8% retracement of the entire move from the 2023 ($15,500!) lows has brought some interest, as this Fibonacci level tends to generate traction among Traders and Investors.

This also comes at an imperfect touch of the 2023 trendline, which presents one of the most important technical support on the long-run.

Breaking this line will let the $75,000 Liberation Day as an emergency lifeline but after that, there isn't much before the $60,000 Monthly Support.

A Bullish divergence on the 8H Timeframe also helped the shorter-timeframe buyers to step in quite aggressively.

A precedingly downside-broken Bear Channel pointed to extreme fear which wasn't followed by momentum accumulation, which tends to create Bullish divergences on the RSI.

These are strong setups for mean-reversion, however not much says for how long things will rebound.

• Therefore, keep an eye on the Channel lows for Short-term support (if it breaks, more bearish).
• On the other hand, holding the Channel after a fakeout could lead to a $102,000 higher bound test.

Levels of interest for BTC trading:

Support Levels:

• $90,000 to 93,000 major support turned Pivot
• Current Weekly Lows $89,340
• $85,000 mid-term Support (+/- $1,500)
• $75,000 Key long-term support

Resistance Levels:

• $90,000 to 93,000 major support turned Pivot
• $98,000 to $100,000 Main Support, now Pivot (MA 50 at $100,000)
• $102,000 Bear Channel Highs
• Resistance at previous ATH $106,000 to $108,000
• Current ATH Resistance $124,000 to $126,000

The $2,700 Level mentioned in our very recent ETH analysis was used as a trampoline for Buyers.

The next test will be to break and hold above $3,000, which also corresponds with the mid-lane of the Channel. Above this, breakout odds greatly increase.

You can access detailed technicals and fundamentals for the Second largest Crypto right here:

Ethereum (ETH) reaches Key Support, Has the Crypto Bear Market begun?

Levels of interest for ETH trading:

Support Levels:

• $2,500 to $2,700 June Key Support (recent rebound)
• $2,620 Session and weekly Lows
• $2,100 June War support
• $1,385 to $1,750 2025 Support
• 2025 Lows $1,384

Resistance Levels:

• $3,000 to $3,200 Major momentum Pivot (Test of the $3,000)
• $3,500 (+/- $50) Resistance and Descending Channel highs
• $3,800 September lows
• $4,000 to Dec 2024 top Higher timeframe Resistance zone
• $4,950 Current new All-time highs

Safe Trades!