Key Insights
- There are signs that the crypto bull run will happen in the coming weeks.
- The Crypto Fear and Greed Index has moved to the extreme fear zone.
- Bitcoin and most altcoins are highly oversold.
The crypto market crash escalated this week, with Bitcoin crashing below the crucial support level at $90,000 for the first time in months. Top altcoins like Ethereum, Solana, and XRP also continued their downward trend. Still, there are at least four catalysts for the new crypto bull run once this shakeout ends.
Crypto Bull Run Could Happen as Fear and Greed Index Slumps
Fear and greed are the two primary emotions driving the financial market. In most cases, financial assets like cryptocurrencies, stocks, and currencies rise when there is optimism and fall whenever there is fear.
The Crypto Fear and Greed Index has been in a strong downward trend over the past few weeks, as Bitcoin and most altcoins have experienced a significant decline. It has moved from the extreme greed zone of 80 in May this year to the extreme fear level of 15 today.
In most cases, cryptocurrencies rebound whenever the Crypto Fear and Greed Index moves to the fear zone. A good example of this is what happened in April this year when Donald Trump announced his reciprocal tariffs leading to a stock and crypto market plunge.
At the time, the Crypto Fear and Greed Index dropped to the extreme greed zone of 17. Bitcoin price rebounded and reached a new record high in May shortly after that.
Another good example is what happened at the onset of the Covid pandemic when the index plunged to below 5 as countries started implementing their lockdowns. Bitcoin and most altcoins then staged a strong comeback a few months later.
The opposite is also true in that Bitcoin and other cryptocurrencies tend to drop when the index moves to the greed zone. For example, the ongoing crypto market crash started in October when the index was in the greed zone of 60.
Bitcoin and Most Altcoins are Highly Oversold
Technicals will likely play a significant role in the upcoming crypto bull run. A closer look at the performance of Bitcoin and most altcoins reveals that many of them are currently in the oversold zone.
For example, the chart below shows that the Crypto Market Cap has dropped to about $3 trillion today. The Relative Strength Index (RSI) has moved to the oversold level of 30, while the two lines of the MACD indicator have plunged to the oversold level of 12.
Other oscillators have also moved to oversold levels in the past few days. This performance suggests that the crypto market will likely continue to fall slightly as oscillators approach the extreme fear zone. They will then bounce back as investors buy the dip.
Nvidia Earnings Could Lead to a Risk-On Sentiment
The other main potential catalyst for the crypto market is the upcoming Nvidia earnings, which will come out on Wednesday this week.
Nvidia’s quarterly reports have become important due to its significant role in the artificial intelligence industry, where it sells the most popular semiconductors. Its chips are used in most data centers in the United States and other countries.
Its third-quarter results comes at a time when investors are worried about the potential AI bubble that may burst as the industry growth slows. This explains why top indices like the S&P 500 and the Nasdaq 100 have pulled back in the past few days.
Strong Nvidia results will be bullish for the stock and crypto markets as they will trigger more upside in the long term.
Bitcoin and Most Altcoins Have Become Cheap
The other major catalyst for the next crypto market rally is that coins have become bargains during the ongoing crypto crash.
One of the most popular gauges for measuring the valuation of a coin is known as the market value to realized value (MVRV) indicator. This is a common tool that looks at the current market value of an asset and then compares it to the realized value of all holdings.
Data compiled by CoinGlass shows that Bitcoin’s MVRV Z-Score metric has dropped to 2.0, much lower than the year-to-date high of 2.8 and last year’s high of 3.1. In most cases, cryptocurrencies tend to rebound when the MVRV indicator drops.
There are other potential catalysts for the new crypto bull run, including the possibility of further Federal Reserve interest rate cuts, additional crypto ETF approvals, and the fact that top companies like Bitmain, SharpLink, and Strategy continue to make purchases.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
