Bulls are suddenly taking control of the cryptocurrency market, with Bitcoin easily breaking bearish liquidity and preparing for a potential rapid comeback, while Shiba Inu removes an excessive zero from its price as ETH climbs back above $4,000.
Marking important traces
After weeks of extreme volatility and a brief decline below important support levels, Ethereum is now recovering well. With a significant reversal from recent lows near $3,600, the second-largest cryptocurrency by market capitalization has recovered and is currently trading above $4,000 after rising over 2% over the past day.
ETHUSDT Chart by TradingView”>
Ethereum’s rally is occurring as it finds support at the 200-day moving average, a critical technical indicator that frequently indicates the direction of long-term trends. The fact that ETH was able to recover from this point indicates that traders and investors have regained confidence.
Additionally, the price moved back above the 50-day EMA, supporting the idea that the bearish momentum may be weakening. Increased buying activity is indicated by volume indicators, and stronger green candles that have appeared in recent sessions may indicate that accumulation is beginning. Indicating that the short-term trend could continue higher if buyers maintain pressure, the RSI has also started to rise from oversold territory.
From a broader perspective, Ethereum’s tenacity could also reflect the recovery of sentiment in the cryptocurrency market after a week of significant selloffs. The fact that Bitcoin has stabilized above $107,000 suggests that risk appetite is returning, which is good news for ETH and other large-cap assets.
Going forward, Ethereum will encounter resistance between $4,200 and $4,300. The $4,500 level, and perhaps even the $4,800 level from earlier this year, could be retested if there is a confirmed breakout above this zone. To preserve the current bullish momentum to the downside, support must be maintained above $3,900.
In summary, Ethereum’s recent price movements indicate that it is still very much here. The market has stabilized again, and for now, ETH is firmly back in the public eye as the bulls’ dynamics continue to shift.
Bitcoin volatility is back on track
Bitcoin has staged a stunning recovery after a terrible week of volatility and significant selloffs. It rallied back above $110,000 and managed to break the short-term bearish control that has dominated the market since last Friday’s crash. With this move, sentiment has changed significantly and liquidity is now moving back into bullish territory.
After finding strong support near the 200-day moving average – a historically reliable barrier for long-term holders – Bitcoin began to recover. After falling below $106,000 for a brief period, the asset quickly recovered, sparking a wave of short-term liquidations and renewed interest from buyers.
BTCUSDT Chart by TradingView”>
Bitcoin rose almost 3% over the past day, resuming the $110,000 mark and settling just below important resistance between $113,000 and $114,000. With a group of stop orders and leveraged short positions sitting between $112,000 and $115,000, on-chain and order book data indicate that liquidity concentration has increased. Bitcoin could rise to between $118,000 and $120,000 if it manages to break through this zone, which could trigger a new round of short-covering activity.
Technically speaking, the RSI has rebounded from being in oversold territory, suggesting that the strength of the downside pressure may be ending. An increase in trading volume further supports the idea that the rebound is the start of a structural recovery rather than a simple dead cat movement.
To verify a long-term uptrend, Bitcoin needs to hold above $108,000 in the coming days. Traders should keep an eye out for a consolidation between $110,000 and $114,000 in the near future. A break above this range could lead to a market-wide boost in confidence and a retest of previous highs.
At $110,000, the bears’ hold has finally been broken and Bitcoin appears to have reversed the short-term trend for now.
Shiba Inu recovery here
Shiba Inu has finally shown substantial signs of recovery after several weeks of decline and uncertainty. This is accompanied by a symbolic victory for holders: the price of SHIB no longer has zero. A psychological milestone that many in the community are watching closely was reached when the meme-inspired cryptocurrency recovered above $0.00001000.
This recovery was not unexpected. A region of historic demand and oversold RSI readings coincided with the $0.00000900 level, where SHIB found solid footing. Buyer intervention has helped the rally accelerate, sparking a recent rally of more than 5%. Additionally, the volume increased slightly, indicating that the asset is gradually regaining its reputation.
Technically speaking, if SHIB can maintain this level and close above the 20-day moving average, its move above $0.00001K suggests a near-term trend reversal. The next resistance, which could decide whether this rally turns into a long-term uptrend, lies around $0.00001120. The most important barrier is around $0.00001250.
The recovery of the cryptocurrency market as a whole has also contributed to this. Capital began to flow back into mid-cap altcoins as Bitcoin and Ethereum reclaimed significant psychological thresholds, with SHIB taking advantage of the resurgence in speculative activity. Retail traders’ optimism is further bolstered by on-chain data, suggesting that large wallet addresses, or whales, have resumed accumulation.
