Key Takeaways
What’s next for altcoins like SOL, ETH?
They have bottomed out, but uncertainty about BTC’s price could derail the recovery.
Why are analysts divided on BTC’s short-term prospects?
The key supports have been broken, and $100,000 could be the next battle for bulls.
Despite the cautious tone of the market, leading altcoins remain popular Ethereum [ETH] And Solana [SOL] may have printed a local soil.
According to Johannes Bollingera renowned financial analyst and developer of the Bollinger Bands technical indicator, SOL and ETH may be poised for a recovery. However, BTC’s recovery remains uncertain.
“Potential ‘W’ bottoms in Bollinger Band terms in $ETHUSD and $SOLUSD, but not in $BTCUSD. Time to pay attention soon, I think.”
As for perspective, the “W” shape patterns are common triggers for recovery. For SOL, $180 was defended as support, while ETH secured $3600.
Will the recent leverage flush improve the recovery?
Furthermore, the recent $19 billion deleveraging has removed a lot of market froth that could enable a much more sustainable recovery.
In fact, the CoinGlass Derivatives Risk Index (CDRI) flashed an “overheated” and “high risk” level for liquidations in early October.
This coincided with Bitcoin [BTC] rose to an all-time high above $126K and traders chased the rally with leverage.
Source: CoinGlass
At the time of writing, the CDRI returned to the “neutral” position. This meant balanced, reduced leverage, but unclear direction that calls for flexibility to capitalize on whatever direction the market goes.
In other words, conditions were good for an altcoin recovery, but insecurity still lurks. In fact, the general market sentiment was “fear” levels last seen during the Trump tariffs in early 2025.
Altcoin panic as analysts divided over Bitcoin’s next move
Unsurprisingly, altcoins have embodied this fear more than BTC. This week alone, Altcoin Exchange Inflow spiked to its highest level in the year, underscoring the panic sell-off before and after the October 10 deleveraging.
Source: CryptoQuant
The peaks also often coincide with BTC’s local peaks. So if BTC bottoms and recovers, altcoins like SOL and ETH could follow suit.
Unfortunately, analysts have received mixed opinions on BTC’s near-term prospects. Ansem for example said that he is not bullish unless BTC reclaims $112K.
“I see an end to the momentum and price decline. ETHBTC has already surged, as it does at the end of every cycle. The only way I can change my mind is if we get back above $112,000.”
The bearish sentiment was echoed by Chris Burniske, former Ark Invest Crypto Lead and Partner at VC Placeholder.
Burniske noted that he would be interested in BTC if it fell to $75,000, which would add $100,000 as key short-term support.
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