Fundstrat Global Advisors managing partner Tom Lee said the crypto downturn may already be over, or at the latest could wrap up by April. He based that view on sentiment conditions, recent price action, and technical levels. In his reading, persistent pessimism in the market tends to show up close to cycle lows.
Lee said negative positioning has remained elevated, a pattern he described as common before prices begin to stabilize. His point was direct: downside pressure may be close to running out. In crypto, that phase often looks messy, and it can arrive just before the market finds a durable floor.
Technical targets for Bitcoin and Ethereum remain central to the call
Lee referred to analysis from timing strategist Tom DeMark, who has advised Fundstrat since last November. DeMark expected Bitcoin to fall toward $60,000 during the correction. He also projected Ethereum could bottom near $2,400, with $1,890 as a secondary downside target.
According to Lee, Ethereum later traded near $1,890, matching that projected zone. He added that the market may still need one last move below support. If that happens, he said, it would more likely mark the low than signal a broader extension of the decline.
Lee points to a recurring pattern from prior crypto downcycles
Lee said earlier crypto downturns showed a similar structure. Prices dropped sharply, then stabilized, then briefly moved below support before recovering. He described that phase as a reset rather than a breakdown. That distinction matters because a final undercut, in his view, can be part of the bottoming process instead of a fresh warning sign.
He also said market participants often exit positions late in the cycle, and that selling tends to finish the bottoming sequence. Lee argued that the current market setup looks consistent with that historical pattern.
Macro pressure is still present as retail activity stays softer
Lee said broader macro uncertainty continues to affect digital assets, including interest rate expectations and geopolitical risks. Even so, he said those pressures have not changed the longer-term participation trend. Retail activity remains below last year’s level, while institutional and corporate involvement continues.
That split, in his view, fits the later stage of a market correction. Lee repeated that April represents the latest window for a potential bottom, and said the market appears close to completing the current cycle.