Bearish sentiments dominated the cryptocurrency market last week, with continued selling pressure on major coins like Bitcoin and Ethereum.
· Bitcoin (BTC) Performance: The price of Bitcoin is currently trading around $91,000, after hitting a low of $85,000. Analyses suggest that sellers are dominating the scene, especially with the formation of a "Death Cross" between the 50-day and 200-day moving averages, which is a traditional bearish signal.
· Ethereum (ETH) performance: The price of Ethereum struggles to stay above $3,000, but it remains under selling pressure. All its key moving averages (50, 100, 200 days) are above its current price, confirming the strength of the medium-term downtrend.
· Whale movements and liquidity: According to analysis, a whale recently bought heavily, spending 8,000,000 USDC to acquire about 2,700 ETH from the FalconX platform. More broadly, there are discussions about a decision from the US Federal Reserve to halt the balance sheet reduction program (QT) starting December 2025, which is seen as the removal of a major "liquidity brake" in the market. Historically, this decision leads to a return of liquidity and an increased risk appetite among investors, which could benefit cryptocurrencies later.
📈 Technical forecasts and analysis
Expectations vary between the likelihood of a short-term rebound and a continued decline in the near term.
· Expected Bitcoin rebound: Some technical analyses suggest that Bitcoin is in an "oversold" territory, with the Relative Strength Index (RSI) at 27, which could pave the way for a price rebound in the near future. The first target for this rebound revolves around the $102,000 - $106,000 range.
· Downside risks: If the price fails to maintain current support, especially below $90,000, the decline may extend to target the $80,000 area. Additionally, ongoing outflows from Bitcoin ETF funds reinforce negative sentiment and increase selling pressure.
· Broader outlook: In the long term, some analysts expect Bitcoin to reach $200,000 by the end of 2025, driven by increasing institutional demand.
💡 Investment tips amid market volatility
In light of this volatility, it is important to adopt a prudent investment approach:
· Stick to a clear trading plan: Set your goals and risk levels that you can tolerate in advance.
· Focus on risk management: Do not risk more than you can afford to lose, and use stop-loss orders to protect your capital.
· Think long-term (HODL): A holding strategy can help you ride out short-term market volatility and benefit from the overall long-term upward trend.
