Crypto Market Roars Back: Bitcoin & Ethereum Technicals Turn Bullish Post-Liquidation Carnage

Digital assets stage dramatic recovery as market structure shifts bullish

THE BOUNCE BACK IS ON

Bitcoin and Ethereum just flipped their technical indicators green—and the timing couldn't be more dramatic. Coming off what should have been devastating liquidation levels, both flagship cryptocurrencies are showing resilience that's catching traditional finance off guard.

TECHNICALS DON'T LIE

Key momentum indicators across multiple timeframes have shifted from cautionary to outright optimistic. The move comes despite record-setting liquidations that would typically cripple any asset class—but crypto isn't playing by Wall Street's rulebook anymore.

INSTITUTIONAL WHISPERS GROW LOUDER

Market structure improvements and clearing of leveraged positions have created what analysts call 'cleaner technical foundations.' The washout removed weak hands, leaving stronger conviction buyers to drive the next leg higher.

TRADITIONAL FINANCE STILL SCRATCHING HEADS

While quant funds recalculate their models—apparently forgetting that markets can go up as well as down—crypto natives are positioning for what could be the next major breakout. Because nothing says 'healthy market' like watching hedge funds discover volatility for the first time.

Lee argues that crypto often acts as an early signal for equities and broader market liquidity. He says Bitcoin’s steadiness and Ethereum’s growing on-chain activity—particularly from stablecoin usage on both LAYER 1 and Layer 2 networks—suggest improving fundamentals that could translate into broader risk-on sentiment across asset classes.

Lee’s comments come as JPMorgan plans to let institutional clients use bitcoin and Ether as collateral for loans by year’s end. The move, which will rely on third-party custodians, marks another step in Wall Street’s crypto makeover, especially with the Trump administration loosening regulatory screws.

It’s a full-circle moment for CEO Jamie Dimon, who once called Bitcoin a “pet rock.” Now, that same “rock” can secure a multimillion-dollar loan from the nation’s biggest bank.

“It really does help to see JPMorgan say they’re open to the idea of using crypto as collateral,” Lee added. With fundamentals improving, he argues for “a pretty big movement by the end of the year.”