Fed Meeting Looms as Analyst Calls Crypto Charts “Broken, Bearish — and Possibly Bullish”

Analyst Sees Capitulation Signs in Crypto, Says Fed Decision Could Trigger Rebound

Crypto analyst and macroeconomist Alex Krüger believes the recent market downturn may be setting the stage for a rebound.

In a post on X, Krüger argued that “most crypto charts now look so broken and bearish that it’s bullish,” suggesting that heavy liquidations and defensive positioning could mean panic selling has already run its course.

Technical Breakdown, But Contrarian Signal

Charts shared by Krüger showed bitcoin (BTC $108,736.13) and ether (ETH) falling below short-term uptrends — classically bearish signals — while solana (SOL $198.47) held firmer. Derivatives dashboards revealed sharp long liquidations and option skews tilted heavily toward puts, reflecting strong demand for downside protection.

Krüger noted that bitcoin and ether absorbed the bulk of the selling, while many altcoins steadied earlier, a reversal of typical market behavior that he interprets as an early sign of strength.

Leverage Reset Clears the Path

Significant long wipeouts, especially in late-session cascades, have reset leverage, according to Krüger. Once excess borrowing is flushed out, markets often find room to rebound. “Check the skew,” he told followers, pointing out that extreme fear in options markets can signal bottoming conditions.

Eyes on the Fed

Despite his short-term bullish stance, Krüger said conviction trends are unlikely to emerge before the Federal Reserve’s Sept. 17 rate decision. He expects a cut, arguing that looser policy would inject liquidity and support risk assets.

Broader Cycle View

Krüger maintained that this is not the end of the cycle but cautioned against expecting the euphoric peaks seen in past bull markets. Solana, however, could be an exception, with decentralized treasuries continuing to deploy capital on the network.

His bottom line: extreme fear, heavy liquidations, and bearish charts may be laying the groundwork for the next crypto rebound — with the Fed as the key trigger.