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Bitcoin is beginning to resemble a market that has already completed the hard part, rather than one that is in free fall. The recent decline into the mid-$80,000 range seems to have shaken weak hands, eliminated excess leverage and set up a possible local bottom. ETH and ADA are showing a similar dynamic, entering a consolidation following a rapid price descend.
Bitcoin's movement
From a structural standpoint, this is precisely how Bitcoin has acted during previous bull markets: a steep decline, an aggressive liquidation and then stabilization rather than continuation. The price has already responded significantly to the lows on the chart, indicating that buyers are clearly interested below $86,000. That region has been tested under actual selling pressure and corresponds with previous demand.
Crucially, after that zone was reached, the sell-off did not pick up speed. Rather, the price started to compress and the volume increased, which typically indicates absorption rather than panic. A true breakdown and a corrective leg within a larger uptrend differ significantly in this regard.
Momentum metrics support this perspective. The RSI is still in a range that typically precedes recovery moves rather than trend reversals, but it is no longer significantly oversold.
Simultaneously, Bitcoin is trading significantly below the short- and midterm moving averages, setting the stage for a mean-reversion bounce. Markets do not remain stretched in this way for very long before either collapsing even more or rising again. No collapse has occurred yet.
The next thing that investors should expect is volatility followed by clarity. Seldom is the healing process linear. As the market rebuilds its structure, expect erratic price movement, short-term pullbacks and unsuccessful breakouts. However, the likelihood favors rising prices over time rather than another vertical decline, as long as Bitcoin maintains its position above the recent lows.
Ethereum being tested
Hesitancy is no longer an option because Ethereum is at a technological turning point. ETH is testing the line between the beginning of a much stronger bearish phase and a corrective pullback after losing the $3,000 level and falling into the high-$2,900 range. What transpires here is significant, not only in the short term, but also for the trend's overall structure.
From a chart standpoint, Ethereum is barely hanging on to what's left of its higher-time frame uptrend. The price is trading below important short- and midterm moving averages, pushing against a rising support line. In order to maintain the bullish structure, a recovery bounce is necessary during this limited window.
The recent move will probably be seen as a healthy reset rather than structural damage if ETH is able to recover $3,100-$3,200 and hold above it. The urgency of this zone is supported by momentum indicators. Since the RSI is not extremely oversold and is instead hovering in a neutral-to-weak range, both directions are possible. That is the risk.
It is not possible for Ethereum to drift sideways for weeks. Sideways movement below $3,000 would encourage more aggressive selling from spot and derivatives traders and progressively tilt momentum bearish. The consequences are much more dire if the price breaks sharply below the present support level and is unable to recover here.
A prolonged decline would turn earlier support into resistance and validate a lower high over a longer period of time. At that point, Ethereum would enter a new, stronger downtrend with rapidly expanding downside targets rather than correcting within an uptrend.
A comeback now keeps Ethereum in line with its larger bullish cycle and maintains faith in future higher goals. Failure, however, completely alters the discourse. Right now, ETH does not require hype. It requires prompt and thorough follow-up.
Cardano's chance
Cardano is trading in an area where opportunity and panic are typically separated. ADA's price has been compressed well below all major moving averages, and it is currently hovering around the lower end of its wider range following months of consistent decline. This is how late-stage downside exhaustion usually appears, from a purely structural perspective.
The sell-off has not been chaotic, but it has been aggressive. It matters that prices have been steadily declining rather than falling off in a straight line. This type of behavior typically indicates that distribution has already occurred and that the remaining sellers are weaker hands responding slowly.
Volume attests to this: sell volume has not consistently increased despite ongoing declines. The classic bearish momentum decay is that. RSI is another essential component. Cardano has been in the low 40s for a considerable amount of time, and it has momentarily declined without any significant continuation.
Although it does not provide strong bullish confirmation just yet, it does indicate that ADA is about to enter an oversold regime, in comparison to its recent trend. Although prolonged weakness without acceleration frequently precedes relief moves, markets do not simply reverse when the RSI is low.
Technically speaking, ADA is currently in a stretched condition, as it is trading well below its medium- and long-term EMAs. Sideways resolution is not permanent for these deviations. They either flush one final time with high-volume capitulation or bounce back upward with a recovery rally.