The crypto market has had a bruising week, with Bitcoin sliding toward the crucial $80,000 support zone and the total market cap sinking to $2.90 trillion. Almost every major asset spent the week in the red, and sentiment across social platforms turned sharply negative. But while fear is spreading fast, several classic market indicators are hinting that the worst of the downturn may be nearly over — and a fresh bull run could be closer than many think.
Over the past seven days, leading altcoins like Ethereum, XRP, BNB, and Cardano have shed more than 12%, mirroring the broader sell-off. Yet seasoned traders know that deep corrections often precede major reversals. This time, multiple technical and sentiment indicators are lining up in a pattern seen at the start of previous rallies.
One of the most telling signals comes from the popular Fear and Greed Index, which has crashed to 10, its lowest reading of the year. A reading this low shows extreme fear in the market — historically, the same zone where many crypto bull cycles have begun. Earlier this year, Bitcoin hit a new all-time high just weeks after the index dipped into similar fear territory. By contrast, major tops tend to appear when the index sits in “greed” or “extreme greed,” suggesting that today’s gloomy sentiment may actually be a bullish setup.
Another promising sign is the oversold condition across the market. The Relative Strength Index (RSI) for the global crypto market cap has dropped to 24, a level that typically reflects exhaustion among sellers. The RSI has been forming a falling divergence pattern since July, and readings this low often signal that selling momentum is reaching its limit. If history repeats, traders may soon witness a recovery phase — potentially forming a double-bottom pattern before a stronger push higher.
There’s also growing evidence that the ongoing “cleansing” of excess leverage is nearly complete. According to CoinGlass, futures open interest has plunged to $123 billion, far from its yearly peak above $320 billion. Meanwhile, more than $40 billion worth of liquidations have taken place since October 10. While painful in the short term, this reset removes speculative froth and typically strengthens the foundation for the next major rally.
Beyond technical indicators, macro factors are also turning supportive. Expectations of Federal Reserve rate cuts are rising, global M2 money supply is increasing, and momentum around altcoin ETF approvals continues to build — all of which could fuel renewed demand for digital assets.
The market may still experience pockets of volatility, but several key indicators suggest that the crypto crash may be nearing its final chapter. If these signals hold, December — historically known for its “Santa Claus rally” — could mark the start of crypto’s next big move upward.
Also Read: Bitcoin Rebounds Above $90K as Market Shows Signs of Stabilizing
