Crypto: Bitcoin, Ethereum Target Key Levels

What to Know:

• Key takeaway #1 — Bitcoin’s rally faces resistance near intraday highs, prompting analysts to adjust year-end forecasts.
• Key takeaway #2 — Spot Bitcoin ETFs experienced outflows of $634.8 million this week, reflecting institutional caution.
• Key takeaway #3 — Technical analysis identifies critical support and resistance levels for Bitcoin and major altcoins, guiding trader strategies.

Bitcoin and altcoin rallies are encountering significant selling pressure near their intraday highs, leading some market analysts to revise their end-of-year price targets. This cautious sentiment is reflected in the recent outflows from spot Bitcoin ETFs. The current Bitcoin price action suggests a need for careful monitoring of key support and resistance levels to gauge potential future movements.

Bitcoin Price Prediction

Bitcoin buyers pushed the price above $90,000, but the bears quickly countered with strong selling pressure. This indicates that higher price levels are not yet sustainable, with demand waning as Bitcoin approaches the $100,000 mark. The long wick on the candlestick pattern confirms this resistance, signaling a potential pullback if buyers fail to maintain momentum.

If bears manage to pull the Bitcoin price below $84,000, a retest of the crucial $80,600 level is likely. Strong buyer support is expected in the $80,600 to $73,777 range, which could prevent further declines. Conversely, a break above the 20-day exponential moving average at $90,037 would signal renewed strength, potentially driving Bitcoin toward $94,589 and ultimately the $100,000 psychological barrier.

How Is Ether Performing?

Ether rebounded from its uptrend line but faced resistance at the 20-day EMA ($3,066), indicating bearish pressure. A successful break below the uptrend line could send the ETH/USDT pair down to $2,716, followed by a further decline to $2,623. This scenario would confirm the bears’ control over the short-term trend.

For buyers to regain control, they need to push the Ether price above the $3,350 resistance level, signaling a potential trend change. A successful breach of this level could open the door for a rally toward $3,659 and then $3,918. Institutional sentiment and ETF flows will likely play a crucial role in determining whether Ether can overcome these hurdles.

Analyzing XRP Ledger and XRP Price

XRP has been trending downward within a descending channel, reflecting negative market sentiment. Bulls are expected to defend the support zone between the channel’s support line and $1.61. Any relief rally is likely to encounter selling pressure at the 20-day EMA ($2.03) and the 50-day SMA ($2.18).

If the XRP price reverses from these moving averages, the probability of a break below $1.61 increases, potentially leading the XRP/USDT pair to plummet to $1.25. Conversely, a break above the downtrend line would signal a potential trend reversal, attracting renewed investor interest. Developments in the XRP Ledger and regulatory clarity could also influence XRP’s price trajectory.

What Factors Are Affecting Solana’s Price?

Solana is currently testing its support line, with a weak bounce suggesting continued bearish pressure. The downsloping 20-day EMA ($133) and an RSI below 39 indicate that bears are in control. A close below the support line could trigger a further decline, potentially sending the SOL/USDT pair to $110 and then to the $95 support level.

For bulls to turn the tide, they must push and sustain the Solana price above the resistance line. This would signal a shift in momentum and potentially lead to a rally toward $172. The overall health of the Solana ecosystem, including total value locked (TVL) and network activity, will be crucial in supporting any upward movement.

How Do Derivatives Data and Funding Rates Impact Bitcoin?

Derivatives data, including funding rates and open interest, provide valuable insights into market sentiment and potential volatility. High funding rates, where long positions pay short positions, can indicate excessive bullishness and increase the risk of a correction. Conversely, negative funding rates may suggest bearish sentiment and potential for a short squeeze.

Monitoring derivatives data alongside spot market analysis can help traders anticipate potential price swings and adjust their strategies accordingly. Additionally, understanding institutional sentiment through ETF flows and large options positions can offer clues about the overall market direction. Bitcoin’s price is heavily influenced by these factors, making it essential to consider them in any comprehensive analysis.

The current market conditions indicate that Bitcoin and several altcoins face strong resistance at higher levels. Traders should closely monitor the identified support and resistance levels, as well as derivatives data and ETF flows, to make informed decisions.

Related: XRP Metric Signals Declining Market Interest

Source: Original article