The post Bitcoin & Ethereum Reclaim Key Levels After Weekly Close, But Selling Pressure Builds appeared first on Coinpedia Fintech News
The crypto market starts the week with strength and renewed bullish momentum, led by the Bitcoin price hitting $79,000. Besides, the Ethereum price is also pushing higher, heading to $2,400. The total market cap climbed to $2.64 trillion and has settled around $2.60 trillion. However, the crypto market volume has increased from $96 billion to close to $120 billion, hinting towards a rise in the trader’s participation. The weekend activity remained elevated, which is a key sign of the move backed by enough liquidity.
The top gainers for the day are Zebec Network with over a 12.14% jump, followed by Pudgy Penguins with 11.91% and Jupiter by over 5.92%. On the other hand, siren price plunges by 9%, followed by Humanity Protocol by 8.36% and Chiliz by 3.41%. However, traders remain vigilant over Pi, Solana & Terra Classic, along with Bitcoin, Ethereum & XRP. The current trade setup hints towards a broad participation, but not an isolated pump.
Why Is the Crypto Market Pulling Back Today?
The latest pullback in the crypto market comes after a strong rally that pushed Bitcoin close to the $80,000 mark and lifted Ethereum alongside it. While the broader trend remains constructive, several short-term factors are driving the current dip.
- Strong Resistance Near $79K–$80K: Bitcoin faced heavy selling pressure near the $79,000–$80,000 zone, a key resistance level that previously triggered a market decline. The failure to break above this range has led to a temporary rejection, causing prices to pull back.
- Profit-Taking After a Sharp Rally: After gaining significantly in recent sessions, traders are locking in profits. Such pullbacks are common after rapid price increases and often help the market stabilize before the next move.
- Liquidation-Driven Volatility: The recent rally was partly fueled by short liquidations, which accelerated upward momentum. As this effect fades, the market is experiencing a cooldown, leading to increased volatility and short-term declines.
- Weak Follow-Through Buying: Despite the initial breakout attempt, buying pressure failed to sustain above key levels. This lack of strong follow-through demand has contributed to the pullback.
- Ongoing Market Consolidation: The crypto market remains range-bound, with Bitcoin trading between key support and resistance levels. Until a decisive breakout occurs, price action is likely to remain choppy.
The current pullback appears to be a short-term correction rather than a full trend reversal. As long as Bitcoin holds above key support levels, the broader bullish structure remains intact. However, a sustained move above $80,000 is needed to confirm continued upside momentum.
Key News Impacting the Crypto Market Today
- SUI ecosystem exploits shake confidence: Volo Protocol lost ~$3.5M after an admin key compromise. Scallop exploit drained additional funds from a deprecated contract
- Strong Bitcoin ETF inflows continue: Consistent institutional inflows into spot BTC ETFs are providing underlying support and stabilizing market sentiment. Nearly $2 billion in the past week continues to act as a price support driver.
- Heavy short liquidations earlier in the rally: Overleveraged shorts got wiped out during the move to $79K. Current pullback is partly due to the post-liquidation cooldown
- Geopolitical easing boosted the recent rally: Ceasefire developments improved global risk sentiment, which helped push crypto higher, but now momentum is cooling
What’s Next for the Crypto Market?
The market is at a decision point, not a confirmed trend. Bitcoin is holding near a key resistance zone around $78K–$80K, while Ethereum is attempting to sustain its recent strength. The next move depends on whether buyers can maintain control after the recent rejection and pullback.
Bullish scenario:
If Bitcoin holds above the $75K–$78K range and reclaims $80K with strong volume, the market could see a continuation higher, with Ethereum and altcoins following through.
Bearish scenario:
If Bitcoin fails to hold support and drops below ~$73K–$75K, the current move risks turning into a bull trap, potentially leading to a deeper correction.
Source: https://coinpedia.org/price-analysis/bitcoin-ethereum-reclaim-key-levels-after-weekly-close-but-selling-pressure-builds/
