Bitcoin’s recent liquidity flush causes market-wide volatility, traders are becoming cautious as Ethereum shows signs of potential recovery. While BTC is struggling to stabilize after clearing a key liquidity level, ETH is attempting to regain significant resistance, setting the stage for a move that could be the next big direction for the crypto market.
Market weakness continues after $116,000 liquidity sweep
Can Özsüer, BTC 1H Current Chart Latest Update share At X, we highlighted that Bitcoin’s hourly chart shows little to no bullish reflection at the moment. He noted that market sentiment has weakened, especially after the price rose above $116,000. liquidity The clearing of the zone further worsened the overall outlook for the broader crypto market.
Ozsure said the overall setup remains vulnerable and taking a scalp-prong position in such situations can be risky until there is more clarity. inversion A structure begins to form. Ozsure identified the $111,000 level as a potential zone for initial buying, suggesting short-term support could emerge around this point. However, he warned that if this level is not sustained, Bitcoin could experience an even sharper decline towards trendline support near $109,000.
He further advised: trader You need to carefully build your strategy, focusing on the zone within the zone, which he called “box number 1.” This area has the potential to provide a technical framework to identify potential points of entry and effectively manage risk.
In conclusion, Ossure pointed out that the cleanest and safest approach is to adjust your trading plan to the optimal price level while keeping your position protected beyond the defined support. structure.
A return to $4,200 will increase bullish momentum.
Bitcoin faces a potential decline, says crypto analyst Ted Pillows. revealed that Ethereum is currently engaged in an important battle to reclaim the $4,200 resistance zone. Success in this immediate technical battle is critical as it will determine the trajectory of the asset in the coming days.
Ted Pillow outlined the conditions for the rally to continue. If Ethereum is able to resolutely regain and sustain the $4,200 level, traders should “expect further bullish continuation.” Overcoming this resistance could provide a clear path to the next higher price target.
Conversely, if ETH fails to secure the $4,200 zone, the price could pull back. Analysts predict that this failure will require the market to retest the $4,000 level before attempting any further gains, indicating that $4,000 will act as an important line of defense against a deeper market. correction.
Featured image from Unsplash, chart from Tradingview.com
