This analysis is provided daily by CoinDesk’s analyst and Chartered Market Technician, Omkar Godbole.
Recently, CoinDesk discussed three potential challenges that could impact bitcoin’s (BTC) journey toward $120,000, one being the established bull fatigue zone above $116,000, which has been evident since July. BTC’s recent rise from lows around $107,200 has encountered resistance, as it has struggled to break decisively above $116,000 since last Friday.
This resistance closely coincides with a significant trendline that connects the bull market peaks of December 2017 and November 2021, serving as a price ceiling that has limited BTC’s upward movement in July and August, as reflected in the long upper wicks on the monthly candles. The bulls have made two attempts to surpass this line but have not managed to hold above it.
Will the bulls succeed on a third attempt? It’s possible. Many analysts anticipate bitcoin will continue its upward grind as the year ends, supported by the expected Fed rate cut. However, another failure to breach this level could strengthen the bears, potentially leading to a more significant pullback.
Initial signs of a breakdown could appear if daily prices fall below the Ichimoku cloud, which is currently a zone of indecision. At the time of writing, bitcoin is trading within this cloud, providing minimal directional clarity. Crossovers above or below this cloud often indicate shifts in momentum, so traders should monitor closely.
SOL’s ‘Shooting Star’ Warning
While the excitement surrounding solana’s (SOL) price potential is high, technical indicators suggest caution. On Sunday, SOL formed a classic “shooting star” candlestick after reaching a multi-month high near $250, only to pull back sharply by the close.
This pattern, characterized by a small real body with a long upper shadow following a prolonged uptrend, as seen in SOL’s case, indicates that buyers drove prices higher but ultimately lost control to sellers, who brought the price back down toward the day’s low.
The bearish signal was reinforced when prices dipped further to about $230 on Monday, hinting at a possible trend reversal.
For bulls to regain dominance, SOL will need to reclaim and maintain levels above the $250 peak. Otherwise, a deeper decline seems likely, especially if the Fed’s upcoming decision disappoints markets with a more hawkish outlook.
Ether’s Narrowing Price Range
Ether (ETH) appears to have lost its previous momentum, moving sideways after reaching an all-time high near $5,000 last month. The price action has created a symmetrical triangle—a technical formation that denotes indecision, where neither bulls nor bears are prepared to make a decisive move.
Typically, these triangles resolve in either a breakout or breakdown, setting the stage for the next directional move. For now, it’s best to wait for discernible signals as Ether’s price consolidates within this tightening range.
