PakGazette – The market leader has made a significant comeback as it has reached a new all-time high of $106,000. Strong market fundamentals and growing institutional interest have supported investor sentiment, as evidenced by this breakout, which highlights Bitcoin’s current momentum.
As Bitcoin open interest reaches an all-time high of $67 billion, the rise to $106,000 is a blatant indication of increased interest in the derivatives markets. Because leveraged positions magnify both bullish and bearish moves, high open interest can increase volatility, although it generally indicates strong speculative activity.
The next significant resistance level for Bitcoin after this notable ATH is likely around $110,000. There may be a lot of selling pressure on this psychological barrier as investors try to lock in profits. The next target would approach $120,000 if Bitcoin maintains its bullish momentum and surpasses $110,000, helped by growing institutional inflows and widespread adoption.
Bitcoin has solid downside support near the $98,000 mark, where buyers have defended important levels in the past. If a brief pullback occurs, the 50 EMA on the daily chart, which is currently trading around $97,000, will offer an additional layer of support for Bitcoin. The market as a whole has risen since Bitcoin returned to its all-time high, raising hope for altcoins.
In the past, as investors sought opportunities to earn higher returns, new highs in Bitcoin have caused capital to move into alternative assets. This situation could repeat itself, and other major altcoins will benefit from the optimism surrounding Bitcoin.
last throwback
Dogecoin is currently seeing a worrying drop in trading volume and volatility, suggesting the asset’s price action lacks momentum. Despite holding support at $0.39, DOGE has stalled below its upper resistance level at $0.42 following a streak of notable gains. Reduced investor interest or reluctance to commit to larger positions, often resulting in stagnant price movements, is reflected in declining chart volume.
Additionally, there is less volatility, indicating a tighter trading range. This may indicate that DOGE is preparing for its next big move through consolidation. Although recent attempts to retest the upper boundary have failed, the asset is still within a parallel ascending channel. An uptick in buying volume and increased bullish sentiment is necessary for Dogecoin to break through the $0.42 resistance and make a significant move higher.
On the downside, the price may test the next critical support, which is around $0.34, if DOGE fails to maintain its current support level. The 50 EMA, a frequently observed indicator that often serves as a buffer during pullbacks, is in line with this region. The price may be dragged towards the $0.27 level, where the 200 EMA offers longer-term support, if it falls below this zone, which could lead to additional selling pressure.
The current low volume environment advises investors to exercise caution. The mood of the market as a whole and whether volume increases in the coming days will likely determine breakouts in either direction. Will a push towards $0.50, a psychological level that traders are closely watching, be possible if Dogecoin can regain its momentum and break above $0.42?
Ethereum pushes again
Approaching the $4,000 mark, Ethereum has proven its strength and tenacity. However, there was psychological resistance to the price which caused a slight drop. This pullback shows that Ethereum is facing selling pressure as buyers are hesitant to maintain momentum above this crucial threshold and traders are taking profits. With price action consistently above its major moving averages, ETH remains bullish overall on the chart.
The fact that the 26 EMA continues to serve as dynamic support suggests that Ethereum continues to rise. Still, the volume profile indicates a drop in buying pressure, indicating a lack of conviction to make a sharp move above $4,000. The recent excessive rallies where Ethereum posted steady gains without a notable correction are the main culprits for this pullback.
As ETH tests this resistance level, traders will likely pause to re-evaluate. If Ethereum cannot break above $4,000, it may pull back towards the 50 EMA, which is the nearest support zone at $3,677. Whether Ethereum can continue its upward trajectory or experience additional consolidation will depend on this level.
If Ethereum breaks the $4,000 barrier with a significant increase in volume, the next target could be between $4,200 and $4,500, where the momentum could accelerate further. But a further pullback towards $3,300, a solid support zone coinciding with the 200-day EMA, could be possible if a break below $3,677 occurs.
Although Ethereum price action remains encouraging, overall, more buying volume is needed for a clear breakout. Investors should closely monitor whether the bulls can withstand the pressure in the coming days and keep an eye on the $4,000 resistance. Despite its recent bullish rally, Ethereum’s recovery is still in its infancy until then.
