 ▲ Virtual asset trading |
The virtual asset market has entered an unprecedented oversold zone, forming a potential bottom. Decisive rebound signals that could bring a long-awaited end to the extended bear market are being detected throughout the market.
Cryptocurrency content creator and analyst Lark Davis stated in a video released on his YouTube channel on Feb. 13 (local time) that “the market is currently in a severely undervalued zone,” adding that “new opportunities are emerging amid the clash between macroeconomic factors and technical indicators.” Citing analysis from the CEO of Bitwise, Davis forecast that the integration of AI agents, the expansion of institutional decentralized finance, and the tokenization of real-world assets will serve as key drivers for escaping the downturn. He also գնահատated that major institutions entering the on-chain space, such as the collaboration between BlackRock and Uniswap, demonstrate that the market is entering a phase of maturity.
From a macroeconomic perspective, attention is being drawn to the possibility that Wall Street and the U.S. Treasury may forcefully inject liquidity into the market to ensure the success of $15 trillion worth of initial public offerings scheduled over the next 18 months. The analysis suggests that the administration of President Donald Trump and the Treasury will show policy intent to keep markets heated, and even if short-term corrections occur in the stock market, a strong pumping cycle will ultimately unfold. Capitalists on Wall Street are expected to maintain liquidity supply to recoup their investments, a trend likely to accelerate capital inflows into the virtual asset market.
Bitcoin (BTC) technical indicators are currently hovering near historic lows capable of generating generational wealth. The price of Bitcoin is positioned within the bottom 5% relative to its 200-week exponential moving average, while $25 billion in short positions in the futures market awaits liquidation. If Bitcoin begins to rebound and breaks above the $83,000 level, a large-scale short squeeze could occur, potentially triggering an explosive price surge. The current market concentration, with the majority of participants betting on further declines, suggests that energy for a powerful trend reversal is being compressed.
The altcoin market, including Ethereum (ETH) and Solana (SOL), is experiencing one of the most extreme periods of fear and oversold conditions in history. The Relative Strength Index has hovered below 30 for weeks, and the overall altcoin index has fallen to -2.5 standard deviations below its average. Davis stated that “when this extreme undervaluation is resolved, altcoins are likely to deliver the fastest and strongest returns.” Although short-term demand remains weak, as evidenced by the Coinbase Premium recording negative values for 25 consecutive days, this signals that a technical bottom may be near.
The virtual asset market stands at an inflection point where psychological breakdown intersects with technical opportunity, and institutional capital appears ready to reshape the landscape through full-scale entry. As the integration of artificial intelligence and blockchain infrastructure begins to produce tangible results, the intrinsic value of virtual assets is likely to be reassessed, and whether support holds at these historic lows will determine the magnitude of the anticipated 2026 bull market. Investors need a strategy that prioritizes capturing rebound opportunities arising from liquidity cycles engineered by major capital and the resolution of technical oversold conditions, rather than being swayed by short-term volatility.
*Disclaimer: This article is for investment reference only, and no responsibility is assumed for any investment losses based on it. The content should be interpreted for informational purposes only.*