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Bitcoin Analysis: Bullish Momentum Exhaustion and Key Support Levels
In the ever-evolving world of cryptocurrency, Bitcoin (BTC) has captured the attention of traders and investors alike as it hovers near the critical price point of $120,000. Recent data from Deribit-listed options indicates a significant positive dealer gamma at the $120,000 and $120,500 strikes. When dealers maintain a positive gamma exposure, they engage in buying low and selling high to achieve a neutral net exposure, which inadvertently curtails volatility.
Bitcoin Correction Risks Are Rising
As Bitcoin continues its directionless trading, the crucial support area between $116,000 and $117,000 has become a focal point for analysts. This support zone is validated by both price charts and on-chain activity. A breach of this level could pave the way for a retest of the May high, just below $112,000. Conversely, a convincing move above $120,000 could lead to record highs.
However, the case for an extended pullback appears strong. The minuscule 0.12% green bar confirmed on July 22 on the three-line break chart indicates severe exhaustion of the uptrend. This suggests that a consolidation or reversal may be imminent, despite the overall bullish trend.
Resistance and Support Levels for Bitcoin
- Resistance: $120,000, $123,181
- Support: $116,000-$117,000, $114,700, $111,965
Ethereum Analysis: Reaching New Highs but Facing Correction Risks
Ethereum (ETH) has recently surged nearly 2% in the past 24 hours, reaching a seven-month high of $3,937. However, this momentum was short-lived as prices quickly retreated to around $3,880. This pullback raises concerns about the strength of the rally, as evidenced by the 14-day RSI failing to confirm the new multi-month price high, hinting at potential bearish divergence.
The daily chart MACD histogram is also suggesting a bearish cross, indicating that Ethereum’s native fees and revenue have not kept pace with rising prices. The previously established higher low of $3,510 remains a key support level; if breached, the risk of an extended slide increases.
Resistance and Support Levels for Ethereum
- Resistance: $4,000, $4,100, $4,382
- Support: $3,770, $3,510, $3,000
XRP Analysis: Retreat from Key Levels
XRP (XRP) recently reversed gains from the Asian session, retreating from the former support-turned-resistance level at $3.35. This pullback appears to have momentum as the hourly chart’s RSI has violated the bullish trendline, and the MACD histogram has crossed below zero, signaling a bearish shift in momentum.
This structure favors a retest of the July 24 low of $2.96. If this level is breached, attention would shift to the May high of $2.65. Additionally, the tweezer top pattern observed on the weekly chart, characterized by consecutive candlesticks with highs at $3.65, suggests a bearish shift in momentum.
Resistance and Support Levels for XRP
- Resistance: $3.35, $3.65, $4.00
- Support: $2.96, $2.65, $2.44 (200-day SMA)
Solana Analysis: Cautious Optimism
Solana’s (SOL) price has managed to recover above the hourly chart Ichimoku cloud, indicating renewed upward momentum and a potential retest of $200, the upper end of the ascending channel. However, caution is warranted as the tweezer top formation at $205-$206 on the daily chart remains valid. A move below $184, the higher low, cannot be ruled out and could lead to a swift pullback to the 200-day SMA at $163.
Resistance and Support Levels for Solana
- Resistance: $205-$206, $218, $252
- Support: $184, $163, $126
Conclusion: Monitoring Key Levels
As Bitcoin and other major cryptocurrencies navigate through this volatile market, it is crucial for traders and investors to monitor key support and resistance levels. With Bitcoin facing severe exhaustion of bullish momentum and potential correction risks looming, staying informed about market conditions is essential for making informed trading decisions. For those interested in investing in Bitcoin, check out our guide on how to buy Bitcoin. For insights into other cryptocurrencies, explore our comprehensive guides on Ethereum, Solana, and XRP.
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Meta Description: Stay ahead of the cryptocurrency market with our in-depth analysis of Bitcoin’s bullish momentum exhaustion, key support and resistance levels, and insights on Ethereum, XRP, and Solana. Discover trading strategies and make informed investment decisions today!
