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Cryptocurrency markets are bracing for a period of heightened volatility following recent macroeconomic announcements regarding tariffs, yet analysts anticipate a strong recovery heading into the weekly close. With Bitcoin approaching critical support levels near $90,000 and technical indicators signaling oversold conditions, experts suggest the market is poised to transition from a phase of "disbelief" to "hope," offering strategic accumulation opportunities for long-term investors.
Key Points
- Market Sentiment: The crypto sector is currently in a "disbelief" phase, with technical indicators suggesting a shift to a bullish "hope" phase is imminent.
- Bitcoin Critical Levels: BTC is testing support between $88,000 and $91,000; a breakout above $94,000 is required to confirm a trend reversal toward $102,000.
- RSI Indicators: Relative Strength Index (RSI) on 4-hour, 8-hour, and weekly timeframes are resetting at lows, historically preceding significant price bounces.
- Altcoin Strategy: Large-cap assets like Ethereum (ETH) and Solana (SOL) are favored for their stability over smaller, high-volatility tokens during this adjustment period.
Market Sentiment: Navigating the 'Disbelief' Phase
Despite recent price fluctuations driven by regulatory news and tariff discussions, market analysts emphasize that the current downturn represents a psychological trough known as the "disbelief" phase. This stage is characterized by trader fatigue and doubt, often marking the bottom of a correction before a recovery cycle begins.
According to technical analysis discussed by market expert Sheldon, the market is currently consolidating near significant support zones. The primary objective for traders during this window is not to chase green candles, but to build positions strategically while prices are suppressed.
"The effort is in building the entries, not waiting for the market to pump and then wanting to buy. We are currently in the stage of disbelief. The next stage we are preparing for is the stage of hope."
While short-term volatility is expected—potentially driving Bitcoin momentarily lower to test liquidity—the broader outlook remains constructive. The focus is on weathering the immediate "shakeout" to capitalize on the subsequent recovery.
Bitcoin Technical Outlook: The Path to $100,000
Bitcoin's price action is currently dictated by critical technical support and resistance levels. Analysts identify the $88,000 to $91,000 range as a major support trendline. Protecting this level is vital for maintaining the bullish structure on higher timeframes.
The $94,000 Pivot Point
The immediate resistance level to watch is $94,000. As long as Bitcoin trades below this figure, the market remains in a consolidation or "depression" zone. A decisive break and close above $94,000 would signal the start of the "hope" phase, opening the door for a rally toward the next major resistance level at $102,000.
RSI and Timeframe Analysis
Multiple timeframes are aligning to suggest an incoming bounce. The Relative Strength Index (RSI) on the 8-hour and 12-hour charts is at or near the bottom, indicating that selling pressure is exhausted. Furthermore, the weekly RSI is also flashing oversold signals, a setup that typically favors long-term accumulation.
The strategy for the coming days involves monitoring for a "flush" or a quick dip to grab liquidity, followed by a rapid recovery. Traders are advised to watch for breaks in downward trendlines on hourly charts as confirmation of entry points.
Altcoin Strategy and Risk Management
In the current volatile environment, capital preservation is paramount. Analysts recommend favoring high-market-cap assets like Ethereum (ETH) and Solana (SOL) over more speculative, lower-cap coins. Larger assets tend to move slower but offer more predictable reactions to technical support levels.
Specific Asset Outlooks:
- Ethereum (ETH): Currently approaching a trendline breakout. Traders are advised to wait for a confirmed break of the downtrend on the 4-hour chart before executing long positions.
- Solana (SOL): After a strong performance, SOL has retraced to support. While it may revisit the $135–$136 region, this pullback is viewed as a buying opportunity within a broader uptrend.
- Avalanche (AVAX): Similar to Ethereum, AVAX is compressing under a clear trendline. A breakout here is expected to trigger a sharp move upward.
To mitigate risk during these choppy conditions, the use of funded trading accounts is suggested. This approach allows traders to execute strategies without exposing their entire personal capital to sudden market wicks or liquidation events.
Looking Ahead: The Weekly Close
The conclusion of the current trading week is expected to be pivotal. Analysts predict that despite the intra-week volatility, the market will likely stage a recovery to secure a strong weekly candle close. This would set a bullish tone for the following week, potentially validating the reversal from "disbelief" to "hope."
"I believe by the end of the week we will push up... The moment we start coming out of this oversold territory is when things start to move properly and aggressively."
Investors should continue to monitor the $87,000 level as a line in the sand for stop-losses, while preparing for a potential breakout above $94,000 that could reignite the rally toward fresh all-time highs.
