The crypto market bottom may have been reached: signs of stabilization are becoming increasingly clear

After weeks of downward pressure, the cryptocurrency markets are making a significant pause. Technical signals and institutional flows suggest that the market may have finally found a solid base from last week’s lows. Bitcoin is now around $91.64K, up 0.95% in the last 24 hours, while Ethereum has reached $3.15K with a gain of 1.54%. XRP and Solana have respectively recovered to $2.06 and $141.85, showing a generalized recovery dynamic.

Three pillars support stabilization: institutions, technicals, and sentiment

The return of institutional flows halts the bleeding

After six consecutive weeks of net outflows, Bitcoin and Ethereum ETFs are finally recording new inflows. This change in direction of institutional capital movements signals a warning for the deleveraging that characterized the previous period. The total market capitalization, which fell to $2.74T last Friday, has now recovered above the psychological threshold of $3T. This level is crucial because it represents the peak reached during the 2021 bull market and is considered a key psychological resistance for any rally continuation.

Additionally, the atmosphere in global financial markets is improving thanks to factors such as the dovish reassessment from the December Fed meeting, positive results from tech giants, and signals of potential trade negotiations with China. These combined elements have created a more fertile ground for a recovery in demand for digital assets.

Technical convergences attract rebuys

Bitcoin had experienced a 37% decline from its initial push, but the fall stopped right where multiple technical supports converge. The 61.8% Fibonacci retracement of the entire move from the 2023 lows (which were around $15,500) continues to generate interest among traders. This level also coincides with a touch of the trendline drawn from 2023, one of the most significant supports on the long-term chart.

On the 8-hour timeframe, a bullish divergence on the RSI provided a signal that buyers had reason to intervene aggressively. A previous downtrend channel, after testing the lows, has started to show increasing momentum without further declines, which tends to generate favorable setups for a technical rebound.

Ethereum: the $3,000 test will be decisive

Ethereum found support around $2,700, a level that had already been identified as a springboard in previous days. The next critical test will be breaking and maintaining a stable above $3,000, which coincides with the median line of a medium-term price channel. If Ethereum manages to consolidate above this level, the chances of an upward breakout will increase significantly, potentially pushing the market toward new targets.

Technical levels for trading: Bitcoin

Main supports:

• $90,000 - $93,000: critical short-term support/pivot
• $89,340: current weekly lows
• $85,000: medium-term support (±$1,500)
• $75,000: key long-term support that must not be broken

Main resistances:

• $98,000 - $100,000: important pivot zone with 50-period moving average
• $102,000: previous downtrend channel highs
• $106,000 - $108,000: resistance from the previous ATH
• $124,000 - $126,000: current ATHs

Technical levels for trading: Ethereum

Main supports:

• $2,500 - $2,700: key support dating back to June
• $2,620: session and weekly lows
• $2,100: support from June during previous pressures
• $1,385 - $1,750: long-term support for 2025

Main resistances:

• $3,000 - $3,200: pivot zone where consolidation is needed
• $3,500 (±$50): resistance and descending channel highs
• $3,800: September lows
• $4,000: resistance on higher timeframe and December 2024 highs
• $4,950: new current all-time highs

Outlook: cautious optimism in progress

The rebound taking shape represents a tactical reversal after the relentless slowdown of recent weeks. However, the stability of the correction must be confirmed by holding the identified technical supports. The test of the $3T total market capitalization will be the benchmark to assess whether the market has the strength to continue, or if it is only a temporary recovery before further downward pressures. Vigilance remains essential at the key levels indicated in the long-term charts.