The market participants are hunting for the next token to invest in after squeezing profits from Bitcoin. After facing significant losses in memecoins, they shifted their focus back on the fundamentally strong tokens. As a result, the prices of Cardano, Aave, Maker, etc. and a few more are witnessing a rise in value and trader’s attention. This has also caused a notable flow of liquidity from the top tokens to other cryptos, which has compelled the Bitcoin price and Ethereum price to remain stuck just below the pivotal resistance zone.
Bitcoin price is facing huge resistance at the 200-day MA at $98,903 and Ethereum at $2760. Nevertheless, while the BTC price is slowly losing its grip over the rally, the ETH price is constantly hitting the resistance, which has made it brittle. However, a drop in the volume has reduced the chances of a strong breakout, due to which the ETH price may remain consolidated within the range, despite showing strength compared to Bitcoin.
As per the Glassnode data shared by Ali, the capital inflows into Bitcoin & Ethereum have reduced, which has kept the price accumulated within a range.
The net position change for both BTC & ETH has dropped from $45 billion to $30 billion, marking a 30% dump. This suggests a major shift of focus for the retail traders, who are majorly responsible for keeping up the volatility of the tokens. Besides, the sellers also appear to have exhausted, which suggests the next move may be a bullish one.
What’s Next for Bitcoin (BTC) Price Rally?
The bears are exerting significant pressure over the BTC price while the bulls are only able to hold the levels above the support at $95,610. They are failing to push the token into the resistance zone between $94,521 and $99, 439. However, as the current trade setup suggests, the bulls are currently exhausted, which may cause the price to drop below the range, activating a bearish pattern.
Currently, the BTC price has reached a crucial juncture, as a drop below the support could validate a double-top or an ‘M-shaped’ pattern. This may drag the levels to the neckline around $92,500, which may further trigger a fresh descending trend. The RSI pattern hints towards a continued bearish trend while the Bull Market Support Band (BMSB) is about to undergo a bullish crossover suggesting a shift in the market trend. Hence, a rise from the levels may prevent excess loss but only a rise above the resistance may trigger a surge to $100K.
Is Ethereum (ETH) Price Also in a Dire Straits?
The Ethereum price faced a massive price drain in the first few days of the month that dragged the levels below the ascending support. Although the token is making constant efforts to elevate the levels above the range, the restricted buying volume is preventing it from doing so. However, the price has been tightly holding the support at $2,660 since the past weekend, hinting the bulls are accumulating strength to trigger a strong upswing.
The Chaikin money flow has triggered a breakout into the positive zone, while the price continues to maintain its trend. This is an indicator of a potential bullish divergence as the strength is being accumulated within the market. Besides, the DMI currently remains sluggish after displaying a clear picture of a bullish crossover in the future. Meanwhile, the ADX has displayed a bearish divergence, hinting towards an extended consolidation if failed to rise above the resistance. Hence, the Ethereum (ETH) price is believed to remain within the accumulated range for some more time before making a huge move.
