Crypto news

After several weeks of aggressive selling pressure, the market is showing signs of stabilization. Key altcoins that suffered the largest losses are beginning to show initial recovery attempts. However, one should not rush to conclusions about a trend reversal.

I see that the current consolidation is more of a technical bounce rather than a fundamental shift in sentiment. Trading volumes remain below average, indicating a lack of confident entry by large capital. Many traders who opened short positions at the peak of panic are now locking in profits, creating artificial demand.

Key levels to watch: For Bitcoin, the critical mark remains the resistance zone of $28,000-$28,500. If buyers fail to establish above this range on rising volumes, there is a high probability of retesting local lows around $25,000.

From an on-chain metrics perspective, we are observing an interesting pattern: the number of coins being moved to exchanges has decreased, which is traditionally interpreted as a reduced desire to sell. However, at the same time, the inflow of stablecoins to spot exchanges has also slowed. This creates a situation of uncertainty where neither sellers nor buyers are ready to take the initiative.

My conclusion on the current situation: the market has entered a "wait-and-see" phase. Until we see a clear catalyst—whether macroeconomic data or significant regulatory news—the market will remain in a sideways trend with heightened sensitivity to any external shocks. Investors with a long-term horizon should consider accumulating positions, but with the mandatory placement of stop-losses below key support levels.

Analyst summary: The current bounce is a classic bull trap. The market has not yet undergone a full purge of overheated long positions. I expect that after a brief consolidation, we will see another wave of decline, which will form the true bottom for a new growth cycle. Be cautious and do not succumb to euphoria from the first green candles.