The crypto market is currently sitting at a very important level, and what happens next could determine the direction of prices in the coming weeks.
According to Alex Kuptsikevich, Chief Market Analyst at FxPro, if the current support level holds, the market could be forming a classic double bottom pattern — a bullish setup that may deliver around 10% upside.
However, if the market fails to rebound from this level, it could signal that the recovery attempt is over, opening the door for a potential 25% further decline.
What a Double Bottom Means
A double bottom is a well-known bullish chart pattern that usually appears after a strong downtrend. It happens when the price drops to a low point, rebounds, and then falls again to test that same level — creating a “W” shape on the chart.
If the price breaks above the middle peak of that “W,” it often confirms a reversal to the upside.
The key focus now is whether the ongoing recovery can move beyond the brief rally that pushed the total crypto market cap to $2.47 trillion about 10 days ago — or if that was simply a temporary bounce.
Altcoins Climb as the Dollar Weakens
While uncertainty remains, major altcoins are following bitcoin higher.
Ether gained 4.2%
Solana rose 7%
XRP added 3%
The rally in crypto is also happening alongside gains in traditional markets. MSCI’s Asian equities index climbed 1.4% to a record high, led by strong performances in South Korea and Taiwan. AI-related chipmakers surged ahead of earnings from Nvidia.
Meanwhile, the U.S. dollar offered support for risk assets. The Bloomberg Dollar Spot Index edged lower following President Donald Trump’s State of the Union address. During his speech, he reaffirmed his commitment to tariffs, even after the Supreme Court struck down his global import taxes. He also suggested that tariffs could eventually replace the income tax system.
Historically, a weaker dollar has been supportive of bitcoin and other risk assets. However, during this recent downturn, that relationship has been less consistent.
Confidence Still Fragile
Despite the recent bounce, confidence in the market remains thin. Analysts surveyed by Bloomberg described the current situation as a “crisis of confidence” in bitcoin after its nearly 50% drop from its all-time highs, with no clear new catalyst driving strong upside momentum.
Kuptsikevich believes the market may not have reached its true bottom yet, warning that “real capitulation is still ahead.”
For now, the crypto market stands at a critical turning point — either confirming a bullish reversal or preparing for another leg lower.
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