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- Analysts say Bitcoin may be approaching a local bottom, citing key support at the 61.8% Fibonacci retracement at $94,253, and reversal could lead to an overall crypto market rally.
- Altcoins show early signs of stabilizing, with $ETH and $XRP attempting to hold key support levels after sharp weekly declines.
Even as US equities and Gold continue to deliver strong gains, Bitcoin ($BTC) and the broader crypto market have delivered a subpar performance. With BTc extending its weekly losses to 10%, market analysts question where the bottom lies.
On the other hand, altcoins like Ethereum ($ETH), $XRP, and Solana ($SOL) have also extended double-digit losses over the past week, triggering massive crypto market liquidations.
Will Crypto Market Recover As Bitcoin Tests Local Bottom?
Crypto market liquidations have hit another $500 million today as the $BTC price took a dive under $93,000 earlier today. The long liquidations dominate at $378 million, as top altcoins like ETF, $XRP, and $SOL face volatility.
However, market experts have started believing that the Bitcoin bottom could soon be in, while projecting a reversal to the upside. $BTC pulled back nearly 10% last week after being rejected at the 38.20% Fibonacci retracement level at $106,453, measured from the April 7 low of $74,508 to the October 6 all-time high of $126,299. As of Monday, the asset is trading near $95,300.
If $BTC price holds support around the 61.8% Fibonacci retracement level at $94,253, it could resume its rebound and retest the $106,453 level.
Additionally, blockchain analytics firm Santiment reported that while it is not a definitive market-bottom indicator, the likelihood of a reversal increases when Bitcoin’s social dominance spikes.
During Friday’s drop below $95,000, discussion levels reached a four-month high. They highlighted that $BTC could soon find its footing as retail panic and fear increase.
At the same time, analyst Ted Pillows said the ongoing price action suggests Bitcoin remains in a Wyckoff distribution phase. He noted that the $88,000–$90,000 range may provide a key support zone and potentially serve as a local bottom. He also questioned where the crypto market might establish its next definitive bottom.
A Look At $ETH, $XRP Recovery Chances
Amid the broader crypto market sell-off, top altcoins like $ETH, $XRP, and others have also extended losses. Ethereum fell nearly 14% after being rejected at the previously broken trendline near $3,592 last week, with the token trading around $3,100 on Monday.
A hold above support at $3,017 could set the stage for a move back toward the $3,592 resistance zone. Similar to Bitcoin, Ethereum’s RSI has bounced from oversold territory, indicating weakening bearish momentum.
Similarly, $XRP encountered resistance at the 50-day EMA near $2.49 last week, leading to a decline of almost 7%. As of Monday, the token is trading around $2.25.
A continued recovery could open the path for a move back toward the 50-day EMA at $2.49. The daily RSI sits at 42, close to the neutral 50 mark, indicating weakening bearish momentum.
