Why the Crypto Market Is About to Bounce

The crypto market has been on edge, with sharp liquidations and heavy bearish sentiment shaking traders’ confidence. But according to Dan from Coin Bureau Trading, the charts suggest something different: a bounce is long overdue. While no analysis is ever financial advice, history, technical signals, and macro patterns are all pointing toward an imminent rebound.

CRYPTO Is About To BOUNCE!! Uptober Comes NEXT!!

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Oversold RSI Signals a Bounce

One of the strongest indicators is the Relative Strength Index (RSI) on the daily chart. Historically, every time the RSI dips into oversold territory across major assets like Bitcoin, Ethereum, Solana, and the total crypto market cap, it has marked a local bottom followed by a bounce.

• In June: oversold RSI → bounce, then another leg lower.

• In August: oversold RSI → strong rally to new highs.

• Today: RSI oversold again → bounce highly probable.

Even if the larger trend remains uncertain, the short-term technicals demand a relief rally.

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TOTAL Market Cap at Key Support

The total crypto market cap recently found support near $3.8 trillion — exactly where Dan outlined as a likely downside target weeks ago. From this level, technicals suggest a short-term recovery is not just possible but probable.

What comes after the bounce will depend on momentum:

• 🚀 Continuation higher → altcoin season and multi-year breakout.

• 📉 Continuation lower → retest of support, but still with bounces along the way.

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Macro Backdrop: Why October Matters

Dan highlights the macro charts too:

• DXY (US Dollar Index) – Historically, when the dollar weakens, Bitcoin rallies. The DXY is on the brink of a breakdown.

• Russell 2000 (RUT) – Small-cap breakout patterns in the past have aligned with altcoin seasons. RUT is near all-time highs again.

• Altcoin Market Cap – Excluding BTC and stablecoins, altcoins are pressing against multi-year resistance, suggesting a breakout is close.

With October (often called Uptober) just around the corner, the seasonal tailwinds add fuel to the bullish case.

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Bitcoin Dominance and Market Sentiment

During panic moments, money flows back to Bitcoin, increasing BTC dominance. But even here, RSI shows overbought conditions in dominance — suggesting altcoins are about to reclaim ground. That aligns with the thesis of a bounce and potential alt season.

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Conclusion: When in Doubt, Zoom Out

Markets can feel brutal in the short term, especially after major liquidations. But zooming out reveals a bigger story: technical support, oversold RSI, macro tailwinds, and seasonal trends all point toward a bounce.

Whether this bounce leads to a multi-year breakout or just a temporary rally, one thing is clear — the charts favor the bulls in the coming weeks.

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👉 Key Takeaway: Crypto looks set for a rebound. Traders should prepare for volatility, but history shows that these oversold conditions rarely go unanswered.