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The market could be ready for a longer-term reversal thanks to the fact that most assets in our review have already reached local support levels that will act as foundations for proper recoveries instead of short-term setbacks.
Bitcoin's ready to bounce
Silently, Bitcoin is reestablishing the prerequisites for a recovery above $90,000. Price has stabilized in a tight consolidation zone, holding above recent lows and refusing to make new ones following the dramatic sell-off that cleared leveraged positions. That conduct is more important than a single green candle.
Following the liquidation-driven spike, which is common after weak hands are removed, volume has returned to normal. The shift from panic to accumulation frequently occurs at this point.
From a technical perspective, Bitcoin is making an effort to recover lost ground below its major moving averages. The decline’s slope has flattened, but the price is still trading under some dynamic resistance. That indicates that bears are tired rather than strong.
A move toward $90,000 becomes less speculative and more mechanical if Bitcoin can hold onto this base and overcome local resistance. In terms of both psychology and structure, a breakout above $90,000 would be noteworthy. The price would return to the previous value range, requiring sidelined capital to reenter and short sellers to cover.
The risk scenario is still evident. The bullish case would be delayed, and the range would be expanded if the current consolidation were to break. On the other hand, Bitcoin gains more energy for growth the longer it compresses without degrading.
Bitcoin is not behaving like an asset getting ready for another leg down at this point. It is behaving as though one is processing a move and getting ready for the next. The $90,000 level may move from resistance to support earlier than the majority of the market anticipates if momentum is confirmed.
Shiba Inu shake-off
For the past few months, Shiba Inu has been doing what most people with weak hands detest and strong hands anticipate: staying put.
Price action has obviously leveled off following a protracted decline that drove SHIB steadily lower. The market is currently trapped in a narrow consolidation range, as the aggressive sell pressure that was present earlier in the year has subsided and volatility has decreased. This is significant from a technical point of view.
Exhaustion, not fireworks, is how downtrends end. The slope of SHIB has changed from being sharply bearish to almost horizontal, suggesting that sellers are losing control. Instead of breaking into new lows, the price is hugging local support, and moving averages are no longer accelerating downward. That kind of behavior is more common during accumulation phases than during capitulation.
Additionally, volume presents a coherent narrative. In contrast to previous sell-offs, activity has decreased, indicating that fear has subsided. The market is no longer heavily wagering against SHIB. Participants seem to be waiting instead. When markets lose interest in negative news, they are more susceptible to positive surprises.
This does not imply that a pump will happen soon, or at all. SHIB is still below significant long-term resistance levels, and consolidation may continue longer than most anticipate.
A break above the current range and consistent volume expansion would be necessary for any significant rally. In the absence of that confirmation, the price may stagnate or decline.
The risk-reward profile has nevertheless subtly improved. Due to the compressed structure, even a slight increase in demand could cause a significant move once the downside momentum has mostly been exhausted and the price has stabilized. After protracted periods of inaction, SHIB has historically reacted violently.
Ethereum's volatility about to spike
Ethereum is getting close to a technically critical point, and the chart’s structure strongly suggests that volatility will soon increase.
ETH is now in a tight squeeze between a rising trendline made up of higher local lows and a descending cluster of moving averages following weeks of corrective pressure.
Right now, the price is respecting rising support while pushing against dynamic resistance. This indicates that while sellers are still active, they are no longer in control.
Demand is gradually taking over, as evidenced by the buying interest that follows each decline. Simultaneously, the moving averages above the price are flattening instead of accelerating downward, which frequently signals a change in trend rather than its continuation.
This is not an arbitrary consolidation from a structural perspective. In the past, Ethereum unwound a large chunk of its previous rally, cooling off indicators like RSI and restarting momentum without completely disrupting long-term market structure. Strong trends require that reset in order to continue. The difficult part has already been completed by the market.
This idea is supported by volume behavior. Recent rebounds demonstrate comparatively better follow-through than previous attempts, and selling spikes are no longer growing. This implies that while bullish positioning is becoming more strategic and selective rather than exuberant, bearish conviction is waning.
As of right now, Ethereum is in a position where opportunity and risk are closely balanced. The momentum is rebuilding, the market is coiled and the direction will soon be determined. ETH appears to be getting ready for its next big move, rather than being a declining asset going into the new year.
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