“The Worse They Look, the Better They Get”: Analyst on Crypto’s Bearish-Bullish Setup Pre-Fed

Crypto Charts Flash Extreme Bearishness, but Analyst Sees Rebound Potential

The latest market slump may be setting the stage for a crypto rebound, according to macro analyst Alex Krüger.

In a post on X, Krüger said that “most crypto charts now look so broken and bearish that it’s bullish,” suggesting panic selling has already flushed out excess leverage. Data he shared included bitcoin (BTC $108,736.13) and ether (ETH) breaking below recent uptrend lines, while solana (SOL $198.47) held firmer than majors.

Krüger highlighted significant long liquidations in BTC and ETH futures, which he said had reset leverage across derivatives markets. At the same time, options pricing showed traders heavily skewed toward puts, signaling fear-driven hedging. For contrarians, such one-sided positioning often precedes reversals.

He also noted that altcoins appeared to stabilize earlier than BTC and ETH — an unusual pattern he interprets as a sign of resilience.

Looking ahead, Krüger expects stronger trends to emerge after the Federal Reserve’s Sept. 17 meeting. He predicts a rate cut, which could inject liquidity and bolster appetite for risk assets.

While stressing the cycle is not over, Krüger tempered expectations of a euphoric peak. Solana, however, could continue to stand out as new decentralized treasuries deploy capital into its ecosystem.

“The time to lean bullish,” he concluded, “is when fear dominates the charts.”