Market Analysis of Cryptocurrencies - AI Bubble Intact: Can Bullish Sentiment Stop the Crypto Selloff

This week, attention was solely focused on chip manufacturer giant Nvidia and its latest earnings to see if the so-called AI bubble was popping, or would keep on rising.
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With Nvidia posting positive earnings and revenue data, NVDA share price was up over 3% at the time of this writing. The renewed confidence helped the stock market stage a comeback – will Bitcoin and the rest of the crypto market follow Nvidia and the rest of the stock market higher?

Nvidia Earnings Keep Bulls Confident in AI Bubble

Nvidia, the world’s most valuable company, revealed their Q3 earnings yesterday afternoon. Q3 sales climbed around 62%. The company also anticipates a strong Q4 with an estimated $65 billion in revenue – beating analyst expectations by nearly $4 billion.

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NVDA rises on positive earnings outlook
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CEO Jensen Huang addressed talk about an AI bubble, pointing to sustained demand for Nvidia products. The positive messaging, data, and outlook sparked a near-term rally in NVDA shares, rising as much as 5% yesterday. Price has since pulled back but is holding onto a 3% gain post-earnings.

Tech Stocks Find Support After Nvidia Earnings

Fear that the AI bubble was losing steam has contributed to selling pressure in the stock market, particularly the tech sector. The Nasdaq 100 (NDX) is down over 5% off the highs, but is starting to find support on the backdrop of bullish earnings data from Nvidia.

Nasdaq’s RSI reaches the second-lowest reading of 2025
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Coincidentally, the news catalyst could help cause a reversal back towards all-time highs. From a technical perspective, the NDX’s daily RSI has reached the second-most oversold level in all of 2025. The tech basket saw a 58% rise after the last RSI daily low was put in.

But Can The Broader Bounce Save Bitcoin?

A bounce in the broader stock market wasn’t enough, however, to save Bitcoin from continued downside. The top cryptocurrency by market cap lost 20% of its value since the start of November.

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Bitcoin’s low RSI didn’t lead to a sustained bounce
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Yesterday, Bitcoin reached a similar yearly record-low on the daily RSI while simultaneously triggering a TD9 buy setup on the TD Sequential market timing indicator. Unfortunately, neither signal resulted in a bounce from support. Bitcoin has since lost $90,0000 and is approaching $87,000. 

Uptrend In Jeopardy, Levels to Watch In BTC

Bitcoin’s recent decline has broken below several levels that are considered to be the line in the sand between a bull and bear market. For example, the weekly SuperTrend has now triggered a sell signal, BTCUSD is below the lower weekly Bollinger Band, and it closed below the 50-week Moving Average.

Bitcoin’s SuperTrend has switched to a sell signal
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The only remaining support level left that would further confirm a bear market is underway, would be a loss of $74,000. Below $74,000 would be a higher timeframe lower low for Bitcoin, which would validate the necessary conditions for a downtrend.

And What Happens to Altcoins?

Altcoins remain a wild card in the world of finance. Many of these cryptocurrencies did not experience a bull run besides Bitcoin the last several years. If Bitcoin is indeed entering a bear market, will there be an altcoin season like there was in past cycles?

OTHERS is retesting the 50-month Moving Average

It depends on liquidity conditions. With liquidity contracting, the highly sensitive cryptocurrency asset class is rapidly falling in price. However, due to the extremely sensitive and oversold conditions in many top altcoins, there’s still some probability that any liquidity inflows could cause explosive price appreciation. The OTHERS index, representing altcoins, is attempting to establish support at the 50-month Moving Average where past bottoms have formed.

Conclusion

Nvidia’s strong earnings may have bought the broader tech sector some breathing room, but the crypto market remains at a critical juncture. Bitcoin is flashing deeply oversold conditions across multiple timeframes, yet technical breaks below long-term support levels leave bulls on the defensive. Unless BTC can reclaim key trend levels soon, a deeper retracement toward the $74,000 level becomes increasingly likely — a threshold that would formally confirm a higher-timeframe downtrend.
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Still, pockets of opportunity remain. Altcoins, many of which never enjoyed a true bull cycle over the last several years, are now sitting at some of their most compressed and oversold conditions in history. If liquidity rotates back into risk assets, even modest inflows could ignite sharp recoveries across select sectors.

For now, sentiment hinges on whether the renewed confidence in AI-led equities spills over into digital assets. As markets digest Nvidia’s results and reassess risk appetite, crypto investors face a pivotal week — one that could determine whether the current selloff is nearing exhaustion or only just beginning.