As has been the case for the past few months, the price channel that Bitcoin is in is trending downwards. As Bitcoin approaches the upper limit of the channel (around $70,000), the chances of another attempt to break through this level will increase, but the possibility of a pullback will also increase at the same time.
According to chart analysis, Bitcoin's price action has recently rebounded from lower levels, showing strength, but it is still stuck in this descending channel. Bitcoin needs a strong catalyst or considerable buying momentum to break through the upward trend line and move towards $70,000.
If Bitcoin manages to break through the $70,000 mark again, it could set new highs, but if Bitcoin cannot withstand the increasing pressure, we may see Bitcoin fall back to important support levels.
In the event of a pullback, the psychological level of $60,000 should be watched as this is also where the 100-day moving average currently lies. The 200-day exponential moving average (EMA), the early consolidation area, and $58,000 provide further support below it.
In the bull run, if Bitcoin breaks through the $70,000 threshold, the $75,000 level will become the next target. Bitcoin may face difficulties in this area again, as it has proven to be a strong resistance area in previous market cycles.
XRP’s model is working
XRP just saw a significant breakout of its Symmetrical Triangle pattern, signaling the potential for more upward momentum to come. This triangle has continued to develop since August, suggesting that XRP is gathering strength and ready for action. Furthermore, now that the breakout has occurred, it is clear that the market is trending toward bullish sentiment.
These patterns often precede sharp moves in either direction, which makes a breakout from this symmetrical triangle worth watching. Given that XRP has been able to break higher, it suggests that bulls are currently in control. It is unclear whether this momentum will continue, or if it may falter.
Although XRP looks good right now, there is still a chance of invalidation. If the price falls back into the triangle and breaks below the important support level, the breakout could be a false move.
XRP must sustain above the $0.58 support area, which is an important focus point to confirm the ongoing bullish trend. Failure to hold this level could result in a quick drop back to the sub-$0.55 area for XRP. On the upside, if XRP continues to rise and remains above the resistance, further gains are likely. To consolidate the recent breakout, the market could target the $0.65 to $0.70 area as the next target.
Ethereum Returns
After a brief bullish momentum, Ethereum has returned to its descending price channel, though the overall trend appears to be weakening.Despite the recent uptrend, the second-largest cryptocurrency by market cap is showing signs of a possible reversal.
ETH's price has been on a downward trajectory since mid-2023 as the cryptocurrency has struggled to overcome an ongoing bearish trend. As can be seen from the current chart, Ethereum has recovered quite well over the past week, rising back above the $2,500 threshold. But the bullish momentum seems to be fading as the price approaches important resistance levels around $2,600 and $2,700.
The price is currently consolidating within this descending channel, with a clear lack of strong momentum. Whether Ethereum can hold this level, or if it will fall back to $2,400 or even $2,300, is the key question to watch closely.
A break below these key support levels could signal a return of bearish sentiment and further declines in the coming weeks. But there is some good news for ETH holders. Ethereum could still gain more attention in the coming trading sessions, especially on Mondays, when the market typically sees a surge in activity. If buying interest increases and the price is able to break through the current resistance, ETH could retest the $2,800 area.
