Crypto Update - Momentum Tested, Structure Speaks

Market Overview

The cryptocurrency market began the week with notable strength, showcasing technical victories for Bitcoin and Ethereum. However, the current focus is on confirming these trends rather than chasing momentum.

Bitcoin (BTC) Analysis

Bitcoin has recently achieved several technical milestones:

• Breakout above the consolidation zone.
• Break of the downtrend line.
• Formation of a bullish island reversal.

Despite these achievements, Bitcoin's rally has stalled at a critical resistance zone (94,116-95,694), marking the third rejection from this area. A close below 89,748 could invalidate the bullish reversal, indicating a potential deeper pullback.

Scenarios

Bullish Scenario: If buyers defend the support line, it could confirm the breakout and allow Bitcoin to retest the resistance zone.

Bearish Scenario: A close below the support could lead to targets of 85,176 or even 83,437, approaching the psychological level of 80,000.

Ethereum (ETH) Analysis

Ethereum has shown relative strength compared to Bitcoin, achieving its minimum upside target after breaking out of consolidation. However, momentum has waned, and the price is testing a key support trendline.

Potential Outcomes

If the support line is breached, attention will shift to:

• 3,027 - the previously broken upper border of consolidation.
• 2,757-2,794 - a significant support zone based on the consolidation base and Fibonacci retracement levels.

Conclusion

The current market environment is not conducive to chasing trades. Both Bitcoin and Ethereum are at critical decision points, and traders should wait for confirmation of support or rejection. Daily closes and momentum signals will be crucial in determining the next steps.

Stay tactical and let the market confirm its intentions.