This is a daily analysis of the Coendesk analyst and rented market technician Omkar Godbole.
A few days ago, Coendesk highlighted three potential obstacles that could stumble with the march of Bitcoin (BTC) towards $ 120,000, one of which was the bull fatigue area well established above $ 116,000, instead since July. Indeed, the recent BTC bund of minimums of around $ 107,200 has reached a wall, while decisively breaking more than $ 116,000 since last Friday.
This resistance is closely aligned with a key trend line that connects the picos of the upward market of December 2017 and November 2021, a price price that limits the BTC increase in July and August, as shown by the long higher wicks in the monthly sails. The bulls already tried twice, but could not be sustained above this line.
Can the bulls break it in a third attempt? Probably. Many analysts expect Bitcoin to continue increasing the end of the year, driven by the widely expected Fed rates. But a third consecutive failure would strengthen the hand of the Bears, potentially feeding a deeper setback.
The first warning signals of a breakdown could arise if daily prices escape under the Ichimoku cloud, currently acting as an area of indecision. At the time of writing, Bitcoin quote within that cloud, offering little directional clarity. You cross above or below this cloud of often signaling changes at the time, so merchants must look carefully.
Sun’s ‘Lightning Star’ Warning
While the enthusiasm around the Solana (Sun) pricing perspectives remains high, the technicians suggest a precautionary note. On Sunday, Sol formed a classic “Shooting Star” candlestick after reaching a maximum of several months about $ 250, just to retire abruptly at the end.
This pattern, a small real body with a long upper shadow after a prolonged upward trend, as in the case of Sol, points out that buyers raised the highest prices but finally lost control to the sellers, which led the price again close to the minimum of the day.
The bearish signal was confirmed when prices fell more than $ 230 on Monday, indicating a possible investment of trends.
In order for bulls to recover control, Sol would need to recover and stay above the $ 250 peak. Otherwise, the road looks towards a deeper decrease, especially if the next decision of the Fed disappoints markets by implying a more aggressive position in the coming months.
Ether narrowing price range
Ethher (ETH), meanwhile, seems to have lost its previous impulse, to drift from side after reaching a historical maximum about $ 5,000 last month. The price action has formed a symmetrical triangle, a technical pattern that represents indecision, where neither bulls nor bears are ready to make a decisive movement.
These triangles are generally resolved with a break or breakdown, establishing the tone for the following directional movement. For now, it is better to expect clear signals since Ether prices consolidate within this adjustment range.
