Crypto Charts Look 'So Broken and Bearish They’re Bullish' Ahead of Fed Meeting, Says Analyst

What to know:

• Analyst Alex Krüger says extreme bearish-looking charts can flip bullish once forced selling clears leverage.
• He sees little trend until after the Fed’s next rate decision on Sept. 17, following the conclusion of the two-day FOMC meeting.
• Krüger insists the cycle isn’t over and sees SOL as a possible outlier due to new decentralized treasuries building on the chain.

Crypto analyst and macroeconomist Alex Krüger thinks the market looks ugly enough to turn bullish.

On Saturday, Krüger wrote on X, that “most crypto charts now look so broken and bearish that it’s bullish.” He argued that when price action looks this bad, the panic has usually gone far enough that a reversal may not be far behind.

The bearish charts

Krüger attached a series of charts from Binance and derivatives dashboards.

They included bitcoin and ether (ETH) spot price charts, both of which had fallen below short-term upward trendlines, creating a technically bearish picture. He also posted a solana chart that showed relative resilience compared with BTC and ETH.

Alongside those, he shared BTC-USDT and ETH-USDT derivatives charts, which combined futures indicators — such as funding rates and long liquidations — with options metrics like skew. Together, they showed traders had turned heavily defensive.

Liquidations and leverage reset

In his post, Krüger said long liquidations had been “significant,” especially in “the last two rounds after the close today.”

In futures markets, traders can borrow to take bullish bets. When prices fall, their collateral gets wiped out and exchanges automatically close positions. This kind of forced selling pushes prices down further in a cascade. Once it’s over, however, markets can stabilize because the excess leverage has already been flushed out.