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Lark Davis analyzes the recent crypto market meltdown, discussing Bitcoin’s plunge, altcoin performance, and key technical levels to watch. Despite the chaos, he remains cautiously optimistic, seeing opportunities amid extreme fear.
Bitcoin Oversold But Holding Key Levels
Key Highlights:
- Bitcoin dropped to $82,000, testing the 200-day simple moving average (SMA) before bouncing back to $86,000.
- RSI hit an extreme 25, a level that historically signals potential reversals.
- Key level to reclaim: $92,000 (bearish retest zone) before pushing toward $98,000 to $100,000 for true recovery.
Market Sentiment: Extreme Fear Equals Opportunity?
Key Highlights:
- Bitcoin Fear & Greed Index at 10, a level last seen during the FTX collapse, despite BTC still trading at $85K.
- Massive Bitcoin ETF outflows of $2.3 billion this week triggered panic, but previous outflows of this scale have marked local bottoms.
- The market is stuck in a “wall of worry” phase, which often leads to strong bounces.
Altcoin Divergence: Some Are Thriving Despite Bitcoin’s Drop
Key Highlights:
- Unlike previous crashes, some altcoins rallied while Bitcoin plunged.
- Litecoin (+10%), Aptos, Sui, and other midcaps held strong, signaling selective accumulation.
- Solana ETF rumors continue despite negative press, with $120 support being a crucial level to watch.
Long-Term Outlook: Is This Just a Shakeout?
Key Highlights:
- ETF approvals for Litecoin, XRP, and Solana could be major catalysts in the coming months.
- Macro remains unpredictable, with Trump’s tariffs and equity market weakness potentially prolonging crypto volatility.
- Bitcoin is still in a bullish macro uptrend, and these types of shakeouts often test weak hands before new highs.
Final Take
Despite extreme fear, Bitcoin is holding critical support levels, and select altcoins are showing strength. Until BTC reclaims $92,000, the risk of further downside remains. If $98K to $100K is reclaimed, a major rally could resume. Stay cautious but do not ignore opportunities in oversold conditions.
