Crypto Market Reversal: When Will the Bulls Take Charge Again?

Crypto's been bleeding—but the smart money's sniffing a turnaround.

Signs of Life in the Bear Market

Whales are accumulating, BTC ETFs see inflows again, and that historic 80% drop from ATH? Textbook Wyckoff redistribution. Even the SEC’s latest crackdown feels like desperation—like regulators realizing they’re holding a knife at a gunfight.

The Institutional Playbook

BlackRock’s blockchain ETF filings aren’t charity. They’re positioning for the halving pump—same as the VC funds quietly DCA-ing into SOL and ETH while retail panics. Funny how ‘risky’ assets become ‘strategic allocations’ once suits get involved.

Bottom Line: The reversal’s coming. Probably right after Wall Street finishes shorting your grandma’s altcoin portfolio to zero.

The crypto market today has entered retracement mode. This has come after the valuation of the business dropped by 3.32% to $3.76 trillion. However, the daily trading volume has surged by 3.07% to $180.36 billion. This move hints at growing activity during a short-term correction. That being said, as Bitcoin dominance climbs to 61.1%, capital appears to be rotating out of riskier altcoins.

Amidst this downturn, the Fear & Greed Index meter has bogged down to a neutral score of 57, a sign that investor sentiment hasn’t fully flipped bearish. So, let us check what led to the trek down to the south? And how soon can we expect a rebound?

Why the Market Fell: Key Drivers Behind the Decline

The following are the key factors why the crypto market is down today.

According to CryptoQuant, Bitcoin miners offloaded ~15,000 BTC worth about $1.8B after the July rally. This is while whales executed their third profit-taking cycle since mid-2024. Additionally, options markets predicted further downside, with traders buying puts anticipating a 10–30% decline.

The selloff was worsened by a 112% spike in BTC liquidations, totaling $151M , with $143M from long positions. Notably, open interest ROSE 9.5% even as funding rates plunged 49%, revealing how stretched leverage had become. This caused a cascade of forced selling, dragging the market lower and bringing sentiment down from yesterday’s “Greed” to today’s “Neutral.”

The market cap broke below its 7-day SMA at $3.85T and is now testing the 23.6% Fibonacci retracement at $3.82T. With RSI at 42.07, there’s still decent room for a dip before hitting oversold territory. The key level to watch is $3.73T, a break below could invite deeper correction to $3.57T.

Signs of a Bottom?

The Exchange FLOW Balance chart, which I’ve shared from Santiment, offers an important clue. Over the past few days:

• BTC shows a streak of net outflows, suggesting whales and long-term holders are removing assets from exchanges.
  
• ETH’s netflow appears neutral-to-slightly-positive, indicating mixed sentiment.
  

This mismatch between price decline and exchange behavior implies that while prices are falling, investors aren’t panic-selling, they may be preparing for a re-entry.

What to Watch Next?

Tonight’s U.S. jobs report could swing short-term sentiment considerably. Weak employment numbers may push rate cut expectations, boosting crypto alongside equities. With SPY-crypto correlation at +0.90, traditional markets will likely dictate the immediate bounce or bleed.

FAQs

This appears to be a short-term correction, not a trend reversal, driven by profit-taking and leverage cleanup.

If $3.73T holds as support and macro data leans dovish, a bounce could occur within days to a week.