Krüger: Bearish Crypto Charts Could Be a Setup for Bullish Rebound Ahead of Fed Decision

Crypto markets may be nearing a turning point, according to macroeconomist and analyst Alex Krüger.

On Saturday, Krüger said on X that “most crypto charts now look so broken and bearish that it’s bullish,” arguing that extreme weakness often signals capitulation and sets the stage for recovery.

Charts Paint a Bearish Picture

Krüger shared a series of charts showing bitcoin (BTC $108,736.13) and ether (ETH) breaking below short-term upward trendlines — a technically bearish signal. Solana (SOL $198.47), however, displayed relative resilience.

He also posted derivatives dashboards highlighting defensive positioning: funding rates, long liquidations, and option skews all tilted heavily bearish.

Leverage Flushed, Fear Peaking

Krüger noted that long liquidations had been “significant,” especially during two sharp waves of forced selling late in the session. In futures markets, leverage washouts often accelerate sell-offs but can leave prices primed to stabilize once excess risk is cleared.

Interestingly, smaller altcoins held firmer than BTC and ETH — a reversal of typical patterns. Krüger called this “often a sign of upcoming strength,” suggesting panic selling may be fading.

Options markets echoed that mood, with puts trading at steep premiums over calls. To contrarian traders, such one-sided fear can mark a market bottom.

Fed Policy as the Next Catalyst

While Krüger expects near-term upside, he cautioned that stronger directional moves may not come until after the Federal Reserve’s Sept. 16–17 policy meeting.

He anticipates a rate cut — “not fully priced in,” he said — which could inject liquidity and bolster demand for risk assets like crypto.

Cycle Outlook

Krüger reiterated that the current environment does not mark the end of the crypto cycle, but he also downplayed the likelihood of a euphoric “blow-off top” similar to past cycles. The exception, he noted, may be Solana, which continues to see fresh inflows from decentralized treasuries deploying capital on-chain.

For now, his message is clear: sentiment is at peak fear, leverage has been flushed, and the Fed decision looms — conditions that could make today’s ugly charts the foundation for tomorrow’s rally.