Krüger: Bearish Crypto Charts May Be Setting Up Bullish Reversal
Crypto markets may be nearing a turning point, according to macroeconomist and trader Alex Krüger, who argues that the latest wave of selling could lay the groundwork for a rebound.
On X, Krüger wrote that “most crypto charts now look so broken and bearish that it’s bullish.” He pointed to recent breakdowns in bitcoin (BTC $108,736.13) and ether (ETH) spot prices, while solana (SOL $198.47) showed relative strength.
Futures data, he said, revealed a surge in forced liquidations that flushed out leverage, while options markets displayed heavy demand for downside protection, with puts far more expensive than calls. For Krüger, such lopsided positioning often signals capitulation and sets the stage for upside.
He also observed that altcoins steadied before BTC and ETH — a reversal of the usual pattern — which he described as “a sign of strength.”
Still, Krüger expects conviction trades to emerge only after the Federal Reserve’s Sept. 17 policy decision. He forecasts a rate cut, arguing it remains underpriced by markets and could add fresh liquidity to risk assets.
While dismissing the idea that the current cycle is over, Krüger also downplayed expectations of a classic euphoric peak. Solana, he added, continues to benefit from new decentralized treasuries allocating capital on-chain.
His takeaway: extreme bearishness, combined with flushed leverage and defensive positioning, could prove the foundation for the next leg higher.
