Bitcoin's Reversal Pattern Emerges: A Potential Trouble for Its Upswing
In the world of cryptocurrencies, Bitcoin, Ethereum, and Solana are currently navigating critical turning points that could shape their trajectories in the coming weeks.
Let's start with Bitcoin. The digital gold is showing signs of a potential cup-and-handle pattern on its daily chart. The cup part of this pattern formed between mid-August and early September, and if the handle completes, Bitcoin might surpass the $114,000 resistance and aim for the $118,000-$120,000 range. However, the 50-day EMA, which has been capping rallies in recent weeks, is in the $118,000-$120,000 range, posing a potential hurdle for the bulls.
Ethereum, the world's second-largest cryptocurrency by market cap, is currently trending sideways rather than upward, which may be an early indicator of an impending reversal. The bullish story for Ethereum may be saved if it maintains the $4,200 level and breaks above the $4,500 resistance with strong volume. However, if there is a decline at the 100-day EMA, Ethereum is at risk of a more severe retracement toward $3,600. Ethereum's price structure is at a turning point, deviating from its steady wave-like pattern of higher highs and higher lows.
Solana, the fast-growing smart contracts platform, is also facing a crucial moment. If the $196 level, a crucial short-term support, were broken, further declines toward $185 and the 100-day EMA at $176 would be possible. Solana's recent high was about $210, but it was unable to surpass its August high of about $225. If Solana is unable to recover the $225 level in the near future, a confirmed trend reversal could occur. A lower high is forming on Solana's chart, which may signal the start of a more significant trend reversal.
Across Bitcoin, Ethereum, and Solana, price action is tightening around levels that could determine the direction of the market in the next few weeks. A successful breakout above the $114,000 neckline for Bitcoin would confirm the cup-and-handle and reestablish bullish momentum. A stronger move in Solana might even put the 200-day EMA close to $170 to the test. The next reasonable support level for Ethereum, if it drops below $4,200, is the 100-day EMA close to $4,000.
It's important to note that the search results do not provide the names of the authors who wrote the articles about Bitcoin, Ethereum, and Solana on U.Today. Nonetheless, the consensus among analysts seems to be that the cryptocurrency market is at a critical juncture, and the next few weeks could be decisive for the future direction of these digital assets.
