Signals of Imminent Crypto Bull Run in Oversold Market
The crypto market crash may be close to ending as several historic buy signals align for a new crypto bull run. First, the Fear and Greed Index plunged to a year-to-date low of 10, entering extreme fear territory—conditions that have preceded past rallies, including Bitcoin’s record highs in May. Second, the Relative Strength Index (RSI) for total market capitalization fell to 24, indicating oversold conditions across most tokens. Third, futures open interest dropped from over $320 billion to $123 billion, and liquidations have exceeded $40 billion since October, suggesting a deleveraging cycle that often paves the way for more stable gains. Additional catalysts include potential Federal Reserve rate cuts, rising M2 money supply, and upcoming altcoin ETF approvals. Traders should watch for a possible Santa Claus rally in December and prepare for an initial bounce—potentially forming a double-bottom pattern—followed by a steadier uptrend as market health improves.
Bullish
The alignment of extreme Fear and Greed Index readings, an oversold RSI, and significant futures deleveraging historically precedes market recoveries. In past cycles, Bitcoin and altcoins rebounded strongly after similar conditions—buyers stepped in at lows driven by fear and forced liquidations. The current setup suggests a short-term bounce, potentially a double-bottom, before a sustained uptrend. Longer term, reduced leverage and prospective catalysts—Fed rate cuts, M2 growth, altcoin ETF approvals—should support a healthier and more robust rally. Traders can use this period to position for a crypto bull run once sentiment shifts.