Bitcoin's Recent Performance

The value of Bitcoin has recently increased to test the $100,000 mark, showcasing remarkable strength. However, it's uncertain if this is a temporary peak, as current price action suggests difficulties in sustaining bullish momentum.

The sharp red candle following the $100,000 test indicates significant profit-taking by investors. Many traders decided to lock in profits, leading to selling pressure that prevented Bitcoin from decisively breaking through the six-figure mark.

Despite this, Bitcoin remains above vital support levels, such as $92,000, which could support further upward movement. Technically, Bitcoin is still trading above the upward-trending 50, 100, and 200-day EMAs. This bullish alignment indicates that the overall upward trend is intact, even amidst a brief market consolidation. The RSI indicates slight overbought conditions, suggesting a cooldown may occur before notable higher movements.

To break above $100,000 convincingly, Bitcoin must overcome existing resistance levels and spark fresh buying interest. Achieving this likely depends on improved macroeconomic conditions, increased institutional involvement, and reduced profit-taking pressure.

Although a short-term decline cannot be entirely dismissed, Bitcoin's future remains positive as it continues to gain recognition as a store of value and inflation hedge. Maintaining support at $92,000 and $85,000 could fortify Bitcoin's case for another rally attempt.

Ethereum Regaining Power

While Ethereum's price has yet to cross the crucial $4,000 mark, its journey towards this level is garnering attention. Although the current rally shows signs of strength, it's unclear if Ethereum can maintain its upward trajectory given diminishing momentum beyond $4,000.

Ethereum's slow recovery over recent weeks shows bullish alignment of key moving averages like the 50-day and 200-day EMAs. However, as it approaches $4,000, the volume profile reveals a drop in buying interest, suggesting traders may be hesitant at these prices. Despite this, Ethereum remains well-positioned for future expansion.

By maintaining higher highs and higher lows—key indicators of a persistent bullish trend—Ethereum has effectively exited a protracted consolidation phase. Should it break above $4,000, there may be a short-term move towards $4,300 or higher, provided sufficient buying pressure is present.

However, the risk of a brief retracement looms. If Ethereum fails to break $4,000 convincingly, the market may retreat to support levels of $3,700 or even $3,400. The RSI in the overbought region also hints at a possible cooldown before the next upward leg.

Ethereum's next rally phase greatly depends on on-chain metrics. An increase in staking activity or active addresses might help it reach $4,000. Currently, Ethereum is at a crucial stage; while the rally's momentum around $4,000 has slowed, there's still potential for growth. Traders should monitor for weakness or clear breakouts to guide their actions.

Solana Remains Calm

Solana has recently broken its downward trend and surpassed the crucial $240 level, marking an important technical milestone. This breakout signifies bullish intent, providing hope for investors eagerly looking for momentum and recovery in SOL's price action. However, the declining trading volume raises concerns regarding the breakout’s strength.

Solana's position above key moving averages, such as the 50, 100, and 200-day EMAs, supports its crossing of the downtrend resistance line on the price chart. These indicators suggest a continued upward trend remains bullish overall.

The recent price surge reflects buyer confidence and indicates Solana may soon retest previous highs. Nevertheless, the accompanying decrease in volume raises questions about the strength of this move. A breakout with rising volume typically reflects robust market activity and longevity; a decline in volume hints at waning buyer interest, potentially limiting future upside.

For Solana to solidify its breakout and pave the way to $260 and beyond, recovering trading volume and activity is essential. Investors should assess the robustness of Solana's breakout by monitoring key support levels and watching for signs of increased market participation.

This article was originally published on U.Today