Crypto Market Recovers Over Weekend — Can It Sustain Its Increase This Week?

Following a 36 percent decline from its October peak, the cryptocurrency market showed signs of life with a 12 percent rebound.

The crypto market recovered during the weekend, and traders are asking a familiar question: Is this finally the start of a bullish trend reversal?

The charts now sit at a critical turning point, where either a trend reversal begins or the market resumes its slide toward new lows.

Crypto Market Bounces

The crypto market has fallen by 28% since its all-time high of $4.28 trillion on Oct. 7.

While the decline culminated with a 36% crash and a low of $2.73 trillion, the market bounced afterward.

The bounce has been substantial, but the crypto market has not yet broken from its downtrend line.

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In fact, it is attempting to do so today (red icon), confirming a resistance that has existed for 63 days.

Adding to its importance, the Relative Strength Index (RSI) is at 50.

The 50 trend line is crucial in determining if the trend is bullish or bearish.

As a result, all eyes are on the resistance trend line.

A successful breakout will cause the crypto market to surge.

Since it will also take the RSI into positive territory, it will confirm the bullish trend reversal.

Is Crypto in a Bear Market?

While the daily chart offers a chance of both a breakout and a breakdown, the six-hour chart is bearish.

According to the charts, the crypto market bounce is corrective. 

This is because it is contained inside an ascending parallel channel, which usually leads to breakdowns.

The ongoing rejection fuels this narrative, making an eventual breakdown more likely.

If the crypto market falls into the channel’s lower portion, a breakdown and new lows will be inevitable.

On the other hand, bulls are hoping for a breakout from the parallel channel.

If that happens, it will cause a breakout from the trend line, confirming the trend reversal.

The Market Is at a Turning Point

The crypto market’s 12 percent bounce indicates early strength, but the charts suggest momentum remains uncertain.

A breakout above the long-term trend line would confirm recovery, but until that happens, the corrective structure warns that downside risk remains high.

For now, traders should watch:

• The descending resistance trend line

• The RSI is holding above or below 50

• The parallel channel pattern

These signals will reveal whether the market is gearing up for a full reversal or bracing for another crash.

About the Author

Valdrin Tahiri

Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.

He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.

Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.

He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.

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