Cryptocurrency markets are in a holding pattern after a recent rollercoaster ride sparked by key economic data and the Federal Reserve’s policy announcements. Analyst Josh of Crypto World breaks down the current situation for Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
Bitcoin in Consolidation Phase
Bitcoin initially pumped after the release of lower-than-expected inflation numbers, but retraced some gains after the Fed hinted at a more cautious approach to future rate cuts. This “buy the rumor, sell the news” scenario has led to a period of consolidation in the short term.
Despite the recent pullback, the analyst highlights a bullish long-term trend for Bitcoin on higher timeframes. Additionally, the formation of an inverse Head and Shoulders pattern suggests potential for a breakout above $71.7K-$74K resistance, with a target price of $86K-$87K. Support currently sits at $67K-$68K, leaving Bitcoin in a neutral zone until a clear direction emerges.
Ethereum Faces Resistance After Support Bounce
Ethereum mirrored Bitcoin’s price action, bouncing off the 38.2% Fibonacci retracement level around $3,480. Further support exists at $3,340 (50% retracement) and $3,170-$3,220 (golden pocket).
On the 8-hour chart, Ethereum faces resistance at the golden pocket area of $3,600-$3,650. A confirmed breakout above this level could see further resistance between $3,800 and $3,900.
Also Read: MetaMask Stakes Out New Territory: Anyone Can Now Play In Ethereum’s Staking Game (US & UK Wait)
Solana Stalls at Past Support/Resistance Zone
Solana followed a similar path to Ethereum(ETH), bouncing from support around $140-$144. The coin is currently encountering resistance at $160, a historically significant level that has previously flipped between support and resistance. A confirmed breakout above $160 could lead to a test of the next resistance zone between $170-$175. However, without a clear direction, Solana is likely to experience choppy sideways trading in the short term.
Analyst’s Outlook
The coming days will be crucial for these major cryptocurrencies. Bitcoin’s potential breakout and Ethereum’s ability to overcome resistance will be key factors to watch. Solana’s price action will likely be influenced by the broader market sentiment. Investors should closely monitor price movements and key technical indicators to make informed trading decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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