Crypto markets are navigating turbulent waters, yet some see a silver lining in the chaos. On August 30, 2025, renowned crypto analyst and macroeconomist Alex Krüger suggested that the current bleakness in crypto charts might just be setting the stage for a bullish turnaround. In a post on X (formerly Twitter), Krüger remarked, “Most crypto charts now look so broken and bearish that it’s bullish.” This counterintuitive observation comes at a time when many traders are bracing for the Federal Reserve’s upcoming policy meeting on September 16–17, which could be pivotal for the market’s direction.
Shattered Charts, Bullish Hopes
Krüger’s analysis centers on a series of charts from Binance and derivatives dashboards. Both Bitcoin (BTC) and Ether (ETH) have breached short-term ascending trendlines, creating a technically bearish landscape. Yet, it’s this very gloom that Krüger believes could precede a market reversal. Historically, when prices appear excessively dire, the panic often signals an impending recovery. Interestingly, Solana (SOL) stands out for its relative resilience, not following BTC and ETH in their descent, which Krüger views as a harbinger of potential strength. This sentiment echoes recent analyses, such as More Pain Ahead? Bitcoin and Ethereum Charts Show Mixed Signals: Analysis, which also highlighted the mixed signals in the market.
In his detailed assessment, Krüger noted significant long liquidations, particularly in the two rounds following the day’s market close. In the futures arena, leveraged traders betting on rising prices face automatic position closures when prices drop, leading to forced selling that exacerbates declines. However, with much of the excess leverage now flushed out, stability could be on the horizon.
Defensive Posturing and Market Sentiment
Pointing to derivatives charts, Krüger highlighted defensive stances among traders, with funding rates and long liquidations indicating heightened caution. He urged followers to “check the skew,” noting that put options were significantly pricier than calls. Such imbalances often signal pervasive fear, a classic setup for contrarians who believe that over-hedging can precede a rebound. If everyone is already protecting against further losses, fewer sellers remain to drive prices lower.
Krüger’s observations extend to altcoins, which appear steadier compared to their major counterparts, BTC and ETH. Typically, smaller tokens collapse after the majors, but their relative stability could suggest that panic selling is nearing an end. This divergence is seen by Krüger as a potential sign of underlying strength, hinting that the worst might be over.
The FOMC’s Looming Influence
Krüger’s bullish sentiment is tempered by the anticipation of the Federal Open Market Committee’s meeting in mid-September. While he expects a bullish trend to develop, he doesn’t foresee strong market movements until after the Fed reveals its rate decision on September 17. Krüger speculates that the Fed will cut interest rates, a move he argues is not yet fully priced into the market. Such a decision would lower borrowing costs and potentially inject liquidity, fostering demand for risk assets like cryptocurrencies. This cautious optimism contrasts with recent downturns, such as those detailed in Bitcoin Tumbles Back Below $110K as Crypto Bounce Fails, Ether Plunges 8%, underscoring the market’s volatility.
Despite the current market turbulence, Krüger does not see this as the end of the cycle. Even if prices dip further in the short term, he doesn’t anticipate the kind of euphoric highs that have characterized past bull markets. However, Solana might be an exception, as it continues to attract capital from decentralized treasuries.
For Krüger, the message is clear: the time to bet on an upside is when fear is at its peak. With broken charts, past liquidations, options pricing indicating fear, and the Fed’s decision looming, the setup appears ripe for a potential turnaround. As the crypto community eagerly awaits the Fed’s meeting, the question remains—will the market rebound as Krüger anticipates, or are there more twists in this volatile tale?
Source
This article is based on: Crypto Charts Look ‘So Broken and Bearish They’re Bullish’ Ahead of Fed Meeting, Says Analyst
Further Reading
Deepen your understanding with these related articles:
- Bitcoin, Ethereum and Dogecoin Slide as Crypto Liquidations Top $900 Million
- Crypto liquidations hit $900M as Bitcoin sheds Jackson Hole gains
- Solana vs. Bitcoin chart points to explosive SOL price breakout to $300
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
