- RSI indicates oversold crypto market conditions.
- Bitcoin and Ethereum post modest gains.
- Market remains in extreme fear ahead of U.S. data.
After several days of losses, the crypto market finally showed signs of stabilization as the Relative Strength Index (RSI) hit oversold territory. This technical indicator often signals that selling pressure may have peaked, and a short-term bounce could follow. On cue, Bitcoin ( BTC ) climbed 0.6% to $90,785, while Ethereum ( ETH ) edged up by 0.4% to reach $3,025.
Despite these modest gains, investor sentiment remains cautious. The Fear and Greed Index (FGI) is still deeply in “Extreme Fear” territory at 15, reflecting widespread nervousness among traders.
Uncertainty Ahead of U.S. Economic Data
Traders are closely watching upcoming U.S. economic reports, which could sway market direction. With inflation, employment, and interest rate decisions on the horizon, investors are unsure whether the worst is over or if more volatility lies ahead.
Macroeconomic indicators have become increasingly influential on crypto markets, with high correlation to interest rate expectations and dollar strength. A dovish stance from the Federal Reserve could provide relief, but a hawkish surprise might trigger another wave of selling.
Liquidations and Market Cap Snapshot
Over $270 million in liquidations occurred across major exchanges, signaling that leverage remains high and risk-sensitive. Despite the recent pullback, the total crypto market cap stands at a healthy $3.29 trillion, indicating that long-term interest in digital assets is still strong.
While technical signals like RSI offer some hope for a rebound, the broader crypto market outlook depends heavily on how macroeconomic events unfold in the coming weeks.
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