The cryptocurrency market, after a prolonged downtrend, is showing significant signs that seller exhaustion may be taking hold, challenging the narrative of an imminent collapse. Rather than signaling further capitulation, key technical indicators across major assets like Shiba Inu, Ethereum, and Bitcoin suggest a potential shift towards consolidation or even a rapid retrace that could reverse bearish momentum.
Shiba Inu and Ethereum: Signs of Downtrend Exhaustion
For Shiba Inu (SHIB), recent price action indicates a downtrend nearing its conclusion rather than a continued freefall. Technical analysis points to a slowing rate of decline, displaying fatigue and compression instead of the sharp, panic-driven breakdowns typical of strong bearish trends. This interpretation is bolstered by volume data, which shows a decrease in selling spikes and declines occurring on low participation, hinting at a drying up of supply rather than a further collapse in demand. Similarly, Ethereum (ETH) recently formed a "death cross" on its daily chart. However, the analysis argues this is a "miniature death cross" that developed during a corrective sideways-to-down phase, occurring late in the correction, and does not necessarily signal a severe or uncontrollable collapse. Instead, ETH's price structure, showing compression between a declining moving average and a rising trendline, alongside a lack of accompanying sell volume during the cross, points more towards consolidation behavior than a capitulation event.
Bitcoin's Crucial Juncture: A Potential Reset
Bitcoin's (BTC) recent decline toward the $80,000 area, while significant in headline figures, is structurally depicted as less dramatic. The analysis suggests it may be a corrective leg within a wider range rather than a fundamental breakdown. After an initial sharp rejection from the $100,000-$105,000 range, selling pressure has notably decreased as the price approached the $80,000 support zone. Volume spikes were front-loaded during the first breakdown, with subsequent downside pushes demonstrating diminishing follow-through. Momentum indicators for BTC are declining but leveling off, implying that sellers are losing urgency rather than gaining control. The critical factor now lies in Bitcoin's ability to establish a base above the $80,000-$82,000 range and begin forming higher lows, which would swiftly change the narrative from a breakdown to a market reset, potentially opening the door for a recovery toward $90,000.
