Bitcoin And Ethereum Market Structure Points To Crypto Winter – Details

Overview

The cryptocurrency market has experienced a modest rebound over the past three weeks, with a total market capitalization reaching $3.07 trillion. Despite this brief lift, analysts are warning that the bear market may still be in effect, particularly for Bitcoin and Ethereum, as various technical indicators suggest a prevailing sellers’ dominance.

Market Performance

In recent weeks, Bitcoin has seen an increase of 11% from its local bottom, while Ethereum has outperformed with an 18% gain. However, these positive movements are juxtaposed with concerns from market analysts, particularly one with the username PelinayPA, who argues that the bear market has already begun due to specific technical signals.

Technical Indicators Suggest Bear Market

The market has been under pressure throughout Q4 2025, with significant price corrections leading to a 36.5% retracement for Bitcoin alone. Although there has been a slight rebound, many experts believe that bears have taken control, limiting any potential for a full market reversal.

PelinayPA’s analysis of Bitcoin’s chart reveals that the cryptocurrency is currently trading below several moving averages—short (7, 14), medium (30, 50), and long-term (100). This positioning indicates a strong presence of sellers in the market. More troubling is the observation that these moving averages are sloping downward, which suggests that recent corrections may not be merely temporary but part of a longer-term trend.

Furthermore, these moving averages act as resistance levels, a classic indicator of bear-market behavior, which tends to trigger selling when prices touch these averages. Sellers are exhibiting aggressive behavior, as evidenced by higher volume accompanying red candles, while buying interest appears hesitant, resulting in lower volumes for green candles.

Ethereum’s Position

Ethereum’s market analysis reveals a similar trend, with prices also trading below key moving averages. However, there are signs of a potential reversal as the short-term moving averages (7, 14) are beginning to trend upward. Additionally, the price rebounds from recent lows appear to be stable and stronger, with shorter wicks on candles indicating less aggressive selling pressure. Despite these positive indications, the long-term moving averages remain downward sloping, and low buying volume suggests that the bullish momentum is insufficient to initiate a trend reversal.

From author

The current state of the cryptocurrency market presents a complex picture. While recent gains in Bitcoin and Ethereum provide a glimmer of hope, the underlying technical indicators suggest a more cautious outlook. It is essential to monitor these moving averages and trading volumes closely, as they could signal the continuation of bearish trends rather than a full recovery.

Impact on the crypto market

• The total market capitalization of the crypto market has reached $3.07 trillion, highlighting recent upward movement.
• Bitcoin and Ethereum have shown gains, but technical analysis indicates a potential bear market is underway.
• Analysts suggest that Bitcoin’s current trading position below key moving averages signifies strong sellers’ dominance.
• Ethereum shows some strength relative to Bitcoin, but long-term bearish indicators persist.
• Continued low buying volumes may hinder any potential for a significant price recovery in both cryptocurrencies.
• Market sentiment remains cautious as analysts predict the need for deeper price corrections before any bullish trends can re-emerge.