- Tom Lee says crypto winter may have bottomed or will end by April after one final market undercut.
- Extreme pessimism and weak price action signal late-stage bear market conditions.
- Bitcoin and Ethereum test key support levels, setting the stage for a potential strong recovery.
Veteran market commentator Tom Lee believes the prolonged crypto downturn could be nearing its end. He suggests the crypto winter may have already bottomed or will do so by April at the latest.
In an interview with DASTAN President Farokh Sarmad, Lee said the market likely needs one final “undercut” before establishing a durable floor. “We just have to undercut it once more, and then that’s the bottom,” Lee said.
“I think the crypto winter either already ended or it will be delayed until April. We’re really close to the end.”
Sentiment at Extreme Lows
Lee pointed to deeply negative sentiment and weak price action as classic late-stage bear market signals. “One reason is that the sentiment is terrible. The price action has been bad,” he noted. He sees current conditions as consistent with previous cycle bottoms.
Historically, crypto winters have ended when pessimism peaks and forced liquidations flush out remaining leverage. According to CoinMarketCap, the market fear-and-greed index dropped to 5 early Feb.
Market technicians often describe this as an “undercut,” where prices briefly fall below key support levels before reversing higher.
Bitcoin and Ethereum Testing Key Levels
Lee referenced technical projections from market timing expert Tom DeMark, who has advised Fundstrat since November. DeMark suggested Bitcoin could fall to $60,000, while Ethereum could bottom at $2,400 or even $1,890.
According to Lee, Ethereum recently touched those levels “to the penny,” reinforcing the idea that the market may be completing its final capitulation phase.
Recent volatility has seen Ethereum struggle to hold above $2,000. At the same time, Bitcoin experienced a major dip to $60,000 but is currently trading at $70,200.
Crypto Spring Could Bring a Strong Summer
Lee framed the current environment as a transition phase rather than a structural breakdown.
“When crypto spring comes, we have a great summer,” he said, implying that once the bottom is confirmed, recovery could unfold quickly.
In past cycles, Ethereum has posted multiple V-shaped recoveries after steep drawdowns. On-chain data has also shown continued growth in network activity in recent months, even as prices remained under pressure.
Lee has previously argued that digital assets follow long-term technology adoption curves, with volatility representing cyclical recalibration rather than failure.
Related: Tom Lee Calls Crypto Bottom; BitMine Backs $62K ETH Forecast with $130M Buy
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