This analysis suggests that the major selling pressure in the crypto market, marked by a massive $1.4 billion Bitcoin (BTC) liquidation, has finally subsided. While Bitcoin and Shiba Inu (SHIB) are showing early signs of stabilization, Ethereum (ETH) remains in a highly problematic position.
🟢 Bitcoin (BTC): Seller Fatigue and Stabilization
The painful sell-off that drove Bitcoin from the $110,000 area down into the mid-$80,000s appears to be ending.
Capitulation Complete: The liquidation wave seems to have served as the "capitulation flush" needed to reset market sentiment after such a sharp, structural decline.
Chart Damage: BTC's fall sliced easily through its 20-, 50-, and 100-day moving averages (MAs), showing strong bearish momentum during the drop.
Buyer Intervention: For the first time, buyers are noticeably stepping in, visible as long wicks at the bottom of recent candles, indicating seller exhaustion.
Outlook: The immediate chaos is likely over, provided BTC can successfully hold the $83,000–$85,000 support range. The typical path forward is a grind higher to retest the broken MAs, which are located in the $96,000–$105,000 area.
Key Risk: The main danger is a secondary retest of the lows. If this retest happens on lower volume and holds above $83,000–$85,000, it confirms a classic bottom structure. A break below that range, however, could send BTC back toward the mid-$70,000s.
🔴 Ethereum (ETH): A Troublesome, Linear Decline
Ethereum is failing to exhibit the stabilization patterns seen in BTC and SHIB, placing it in a precarious spot.
Lack of Structure: Unlike the "rounding bottom" structure developing in BTC and SHIB, ETH's chart shows a steep, nearly vertical downslope—it hasn't even begun to level off or curve. This suggests sellers still have strong control.
Weak Rebound: ETH broke all major MAs (20-, 50-, 100-, and 200-day) but has produced only a shallow, feeble bounce, despite the RSI hitting oversold levels. This suggests a lack of conscious buying to absorb the supply.
Core Concern: ETH is sliding beneath the declining MAs rather than curling back toward them. Trend logic suggests that "trapped longs" (those who bought higher) will panic-sell into this weakness, often triggering a second, even sharper price drop.
🟡 Shiba Inu (SHIB): Early Signs of Rounding Bottom
After a prolonged decline, Shiba Inu is finally showing the necessary technical signs of stabilization near its lows.
Downtrend Waning: SHIB is forming a rounding pattern close to the bottom, which signals that the aggressive selling force is weakening. This was helped by one of the lowest RSI readings of the year.
Stabilization Ahead: Investors should expect a gradual stabilization rather than a quick V-shaped reversal. This "rounding bottom" structure requires time for sentiment to shift from fear to cautious accumulation.
Key Support: The $0.0000075–$0.0000080 support band must hold. Defending this range validates the rounding structure and signals the end of the downtrend.
Recovery Targets: SHIB needs to reclaim its short-term MAs first. A close above the 20-day MA could open room to move toward the $0.0000092 to $0.0000100 range. The true reversal from stabilization to recovery requires a definitive breakout above the long-term declining trendline, currently between $0.0000105 and $0.0000110.🚀🚀🚀 FOLLOW KAMRAN_TRADER 💰💰💰
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BTCUSDTPerp86,586.4-1.01%
ETH2,901.16-0.83%
SHIB0.0₅843+2.80%
