U.Today – The market leader has made a huge comeback, rising to an all-time high of $106,000. As evidenced by this breakout, strong market fundamentals and rising institutional interest are supporting investor sentiment, highlighting Bitcoin's continued momentum.
With Bitcoin's open interest reaching an all-time high of $67 billion, the jump to $106,000 is a clear sign of growing interest in the derivatives market. Because leveraged positions magnify both upward and downward movements, rising open interest can increase volatility, even though it typically indicates strong speculative activity.
Bitcoin’s next important resistance level after this notable ATH is likely around $110,000. This psychological barrier can create significant selling pressure as investors seek to lock in profits. If Bitcoin can maintain its bullish momentum and break above $110,000, aided by increased institutional inflows and widespread adoption, its next target will be closer to $120,000.
Bitcoin has solid downside support near $98,000, where buyers have historically defended key levels. If a short-term retracement occurs, the 50 EMA on the daily chart, which is currently trading at around $97,000, would provide an additional layer of support for Bitcoin. Since Bitcoin returned to all-time highs, the overall market has been on the rise, increasing expectations for altcoins.
In the past, Bitcoin's new highs have shifted capital to alternative assets as investors seek opportunities for greater returns. This situation could happen again with other important altcoins benefiting from the optimism surrounding Bitcoin.
final retrace
Dogecoin is currently observing an alarming drop in trading volume and volatility, suggesting that the asset's price movements are running out of steam. Despite maintaining support at $0.39, DOGE continues its impressive rally before stalling below the resistance at $0.42. Decreasing investor interest or reluctance to commit to larger positions often results in stagnant price movements, reflected in reduced volume on the chart.
Additionally, volatility is low, which indicates a narrow trading range. This could indicate that DOGE is preparing for its next big move through consolidation. Although recent attempts to retest the upper bound failed, the asset remains within a parallel ascending channel. For Dogecoin to break through the resistance level at $0.42 and make a significant upward move, a recovery in purchasing volume and increased bullish sentiment are needed.
On the downside, if DOGE fails to sustain the current support level, the price may test the next important support around $0.34. The 50EMA is a frequently watched indicator that often acts as a buffer during retracements and is consistent with this area. A break below this zone could pull the price towards the $0.27 level, where the 200 EMA serves as long-term support, which could lead to further selling pressure.
In the current low-volume environment, investors should exercise caution. The overall mood of the market and whether volume increases in the coming days will likely determine a breakout in either direction. If Dogecoin regains momentum and can break above $0.42, could it push towards $0.50, the psychological level traders are eyeing?
Ethereum pushes again
By pushing towards the $4,000 mark, Ethereum demonstrated its strength and tenacity. Still, there was some psychological resistance, leading to a slight decline. This retracement indicates that Ethereum is facing selling pressure as buyers are hesitant to maintain momentum above this important threshold and traders are taking profits. ETH remains overall bullish on the charts, with price action consistently above the major moving averages.
The fact that the 26 EMA is still acting as dynamic support suggests that Ethereum is still on the rise. Still, the volume profile shows a decline in buying pressure, indicating a lack of conviction to surge above $4,000. This retracement is primarily due to the recent excessive rally in which Ethereum has seen a steady rise without any noticeable corrections.
With ETH testing this resistance level, traders are likely holding off on revaluation. If Ethereum fails to break above $4,000, it could see a pullback to its nearest support zone, the 50 EMA at $3,677. Whether Ethereum can continue its upward trajectory or experience further consolidation will depend on this level.
If Ethereum breaks through the $4,000 barrier with significant volume gains, the next target could be between $4,200 and $4,500, where momentum could further accelerate. However, a breakdown below $3,677 could lead to further retracement towards the solid support zone of $3,300, which coincides with the 200 EMA.
Ethereum’s price trend remains promising, but overall a clear breakout requires higher purchase volumes. Investors should closely monitor whether the bulls can withstand the pressure in the coming days and keep an eye on the resistance at $4,000. Despite the recent bullish rally, Ethereum’s recovery is still in its early stages until then.
This article was originally published on U.Today
