Bearish Point of View in Crypto

The crypto market has diverged from the other markets with the recent green moves this week. While NASDAQ, S&P, and several other stock markets are red and in a downtrend, crypto has been going up under the leadership of Bitcoin.

As an inevitable consequence of conflicts in the global environment, Gold, Silver, Oil have been pumped drastically. In addition to these valuable assets, Bitcoin has followed their way and started to make upward moves. Eventually, we have purely red stock markets and some outliers.

In the rise of Bitcoin, there are several strong reasons to associate with. For instance, the expectation of the Spot ETF news on BTC, the digital form of Gold in the eyes of people and the long consolidation period are some of the effective narratives behind the pump. However, why do altcoins pump and is it sustainable for them?

Bears' Perspective on Charts

The pump in the crypto ecosystem is a nice price action but there are some fundamental issues to be answered.

Inıtially, the volume does not match with the extent of the upward trend. Although we have seen some coins that pumped as much as 20% - 30% in a week, the volume of each trade is rather limited.

While the volume is losing its 30%, the price is expected to make slight moves accordingly. Yet, contrary to what is believed, the market makers are playing something rather unique.

Volume is not the only risk that we face, the fear index VIX is on the rise at the same time.

When the risk goes up, people look for 2 places to put their money: A precious metal (Gold) and the banks to buy short term bonds. Thus, watching VIX closely is a big must for us.

Converging & Diverging

I do not think Altcoins have any reason to become another big trouble for the users.

NASDAQ is seen as a close market to crypto because both focus on technology. According to what is speculated, the expectation of NASDAQ is to test the 200-day moving average before another leg of bull.

The problems are likely to get deeper because, in the foreseeable future, there is no likelihood of world peace or justice.

Though the bearish sentiment does not continue for a very long time in the markets, it is not time for investors to make gains in the markets. Rather, the interest rates can be a good source to hedge their loss of purchasing power due to inflation.

I have changed nothing in my investment plan for 2026. Since the fear of people and the trend in the market push us to make good gains, I choose to follow my own experience and try to control my personal dip and top price levels.

The DXY is above 106 points and seeing it more than 115 points would not be surprising for any one of us. However, the pressure on the banks may end up with a policy 🧐

In the midst of a fire circle, waiting for the bull market might be a bit illusionary. I personally follow the market closely and expect the market to come back and go green from $19K - $23K in the price of Bitcoin. When the price of bitcoin settles down, it will be pretty fun to watch the altcoins to find a new home for themselves to initiate the transactions of people who made earlier investments.

What do you think about the next target of BTC and altcoins?

Share your insights below

Hive On ✌🏼

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