Bitcoin and Ethereum Struggle to Break Higher
Bitcoin (BTC) and Ethereum (ETH) have been struggling to break higher lately, with the pair approaching technical resistance zones. Although there have been slight recoveries, doubts about the continuation of the rise remain due to some factors.
At this point, cryptocurrency analysis firm 10X Research said that the current market faces challenges such as compressed volatility, seasonal weakness, and a lack of macroeconomic catalysts. The analyst firm said this situation casts doubt on the sustainability of the recovery.
“Bitcoin recently recovered and climbed to the $117,000 level after confirming the $111,673 support. This recovery could trigger a short-term technical rally, but there are doubts about the sustainability of the rally as the current market is facing a seasonal bearish phase and lack of momentum.”
Ethereum’s Rise Isn’t Solid!
10X Research also addressed the Ethereum rally, saying that the ETH rally was driven by anticipation rather than solid fundamentals. “Ethereum is seeing an increase in the number of active wallet addresses and an upward price trend, but these movements are currently driven by psychological factors based on narratives like expectations rather than solid fundamentals.”
Bitcoin and Ethereum Could Move Either Way!
Analysts said that recent moves by US President Donald Trump to expand access to cryptocurrencies in 401(k) accounts and boost interest in gold are positive for the market, but the response so far has been relatively muted. Analysts stated that Bitcoin and Ethereum are at a turning point due to factors such as limited reaction, lack of catalyst and seasonal weakness, and that there may be movement in both directions.
“As both Bitcoin and Ethereum reach critical limits, momentum could strengthen or decline sharply depending on future movements.”
*This is not investment advice.