TL;DR
Bitcoin started the week with declines that dragged altcoins down as well before stabilizing near $112,000. Ethereum managed to hold around $4,200 after the correction, easing some of the market’s tension.
However, CryptoQuant analyst Axel Adler warns that the recent recovery does not indicate a trend reversal. In his view, sellers still control the market and the stabilization reflects a corrective phase rather than the start of a new bullish cycle.
Adler’s core argument rests on the Composite Index, a technical indicator that tracks momentum shifts. The index fell below -0.4, a level that historically signals bearish dominance. For Adler, this reading confirms that the current rebound looks more like temporary relief than a structural reversal. He describes the move as a “cathartic rally,” a brief recovery after heavy selling that fails to change the broader market direction.
In this context, Adler considers Bitcoin to be in corrective mode, meaning upward moves should be interpreted as consolidations within a bearish framework. Still, he highlights one decisive level for assessing Bitcoin’s strength: $109,500. If BTC holds above that support and the Composite Index climbs back into positive territory, the market could regain enough momentum to retest the $117,700 resistance zone. Such a move would signal that buyers are starting to regain ground.
Despite that possibility, Adler cautions against assuming the worst is over. The broader trend remains tilted downward, and short-term recoveries should be approached with caution. In his view, the coming days will be crucial in determining whether Bitcoin can break out of corrective mode or slip further toward lower support levels.
At the time of writing this article, Bitcoin (BTC) has risen by 1% in the past 24 hours, trading at around $113,830 per unit. Trading volume also increased by 1.2%, exceeding $49 billion.
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