Bitcoin has created a classic example of market turbulence. After nearly falling below the $100,000 mark of a trend-reversal, Bitcoin made a spectacular comeback, returning to $105,000 and winding up a short seller. Bitcoin charts have looked like minefields for leveraged traders during the past few trading sessions. It turned out to be a classic fake, but the short breakdown below the $100,000 important level seemed compelling enough to cause widespread liquidation.
The subsequent rapid recovery not only disproves the bearish structure, but also shows how resilient the resilient bulls in the current market cycle are. Over-levered volatile markets are characterized by this counterfeit. Fakeout’s actions are a nightmare for those who are overly exposed. Breakout punished the shorts and they believed they had the advantage, but the breakdown washed away the longs and surprised both long traders and short traders.
Technically, Bitcoin is currently trading just under recent resistance after regaining its local high. At the moment, there is not much evidence of bearish divergence, but momentum indicators are still hot, with RSI above 70, which could indicate excessive trading terms.
The volume level has been reduced slightly. This could indicate a short period or simply a cooldown before the next move. If Bitcoin can maintain this momentum and surpass $105,000, it could push towards new heights. However, the possibility of moving another trap or whip saw is still very high if it is rejected once more at this stage. Essentially, Bitcoin has once again demonstrated why it is the king of uncertainty.
While recent rallyings are impressive, the aftermath of that fake-out serves as a reminder that the market’s goal in the crypto space is to hurt as many traders as possible, especially those who become arrogant when using leverage.
Dogecoin is leaving
Dogecoin is currently trapped in annoying range as asset transactions turn sideways and shows signs of stagnation as volatility fades from the chart. Following the recent surge that surpassed resistance tolerance levels earlier this month, Doge has entered the low energy correction phase, which is unable to build on momentum and is beginning to negatively affect market sentiment.
The price is around $0.22, but what worries me more than the price is the lack of movement. There appears to be indecisive among traders as the candlestick structure forms a descending triangle or wedge. The Doge is still chained in place, but the volume is significantly reduced, usually showing great movement. The current technical intersection with 26 EMA medium-term indicators suggests a useful stance from short-term neutrality.
In support, Doge is currently trading above 50 EMA and 100 EMA. However, if there is no clear catalyst, the market appears to be in standby mode. Although still rising, the RSI is moving under the bought zone, suggesting that there is still a potential bullish feeling that is not strong enough to move the needle at this time.
Doge is essentially a retention pattern until it exceeds $0.24 or below $0.21. Traders should monitor volume and EMA compression as they are expected to explode once this sleep is over. The only question is which course do I need?
Solana can come back
Solana’s pressure is steadily increasing, and a surprising breakout could be imminent. The downward wedge pattern formed just below the significant $170 resistance level led to the asset entering the consolidation phase following a robust gathering in late April to early May. Solana is a strong competitor in volatility-driven moves due to this structure and its proximity to the 200 EMA.
At $167, Sol is currently trading at a technical inflection point. Almost precisely, the place where the price action is wound is 200 EMA, acting as both a magnet and a resistance. Clear breakouts are often preceded by this type of setup from the past, especially when short-term exponential moving averages such as 26 EMA begin to converge on long-term indicators.
The approaching intersection between the 26 EMA and 200 EMA enhances this arrangement. This bullish crossover could be a key technical confirmation of trend reversal. This is a setup that often draws momentum. When combined with breakouts over $170, this signal can cause a strong bullish wave that can bring Solana closer to more than $190.
The volume is somewhat cooled, but Solana’s RSI is still above 55, indicating that there is still potential for growth before the assets are purchased again. The volume reduction could simply be a pause. It’s a moment of indecisiveness before the market picks its direction.
Particularly with a surge in volume, a clear break that surpasses this barrier will likely lead to a large upward movement. On the other hand, a rejection could bring support for retesting SOLs in the $155-$160 range. With the charts currently bullish, Solana may be prepared to surprise everyone watching from the bystanders.
