 ▲ Bitcoin (BTC), Ethereum (ETH) |
As Bitcoin (BTC) and major cryptocurrencies enter historically oversold territory and signal the formation of a bottom, analysts suggest that Donald Trump’s upcoming financial appointments could act as a catalyst for a market rebound.
On February 10 (local time), cryptocurrency analyst Lark Davis said in a video posted on his YouTube channel that technical indicators suggest the crypto market is approaching a bottom. U.S. President Donald Trump previously remarked that appointing Jerome Powell as Federal Reserve Chair was a mistake, hinting that figures such as Kevin Warsh could work more closely with the Treasury to drive economic growth. Trump also expressed strong confidence that the economy could expand by as much as 15% depending on the capabilities of the next Fed chair.
Bitcoin is currently searching for direction within a range between $68,000 and $72,000. Davis noted that Bitcoin’s weekly Relative Strength Index (RSI) has fallen to levels rarely seen in history. In past instances, such low weekly RSI readings marked the final stages of bear markets. He added that maintaining price levels above the 200-week Exponential Moving Average (EMA) is a key factor in preventing further declines.
Ethereum (ETH) and Solana (SOL) are also showing signs of bottom formation. On the two-week chart, Ethereum has touched the lower Bollinger Band, a pattern similar to the 2022 bear market bottom. The daily Moving Average Convergence Divergence (MACD) indicates extreme oversold conditions, increasing the likelihood of a rebound. Solana, meanwhile, is experiencing compressed volatility, and a breakout above the $88 resistance level could provide sufficient momentum for a rise toward $130.
In traditional financial markets, risk appetite is also emerging. The Russell 2000 index is approaching record highs, while major technology stocks such as Meta are undergoing technical retests in preparation for a rebound. Davis emphasized that Bitcoin must prove its value as digital gold rather than merely a software-related asset, noting that conditions are forming for Wall Street capital to flow more actively into the cryptocurrency market.
The cryptocurrency market is currently in a stabilization phase, consolidating supply and demand as it moves beyond a period of price stagnation and prepares for a new trend reversal. As excessive leverage in the futures market is flushed out and key indicators simultaneously signal potential rebounds, investors should focus on tangible changes in the charts. With the Trump administration’s pro-cryptocurrency stance aligning with signs of macroeconomic recovery, a full-scale revaluation of the digital asset market appears increasingly likely.
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