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Bitcoin enters a consolidation phase as traders take profit

Bitcoin enters a consolidation phase as traders take profit

Key point:

Bitcoin (BTC) remains pinned below the breakout level of $109,588, indicating that the bears are fiercely defending the level. Bitfinex analysts said in a market note that profit-taking generally follows after Bitcoin hits a new all-time high after a sharp rally. The report added that a mild retracement or consolidation would be healthy and lay the foundation for the next leg higher.

Glassnode had a similar view. In its latest report, the market intelligence company said that the relative strength indicator (RSI) has weakened, suggesting easing momentum, which could lead to “a potential pause or reversal in the recent bullish trend.”

Crypto market data daily view. Source: Coin360

Even if a correction happens, dips are likely to be purchased. Material Indicators co-founder Keith Alan remains bullish as Bitcoin continues to trade above $100,000, and the whales are accumulating. He expects Bitcoin to find support near the $94,000 level. 

What are the critical levels to watch out for in Bitcoin and altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price prediction

Bitcoin’s failure to maintain above the $109,588 level may have attracted selling by short-term traders. 

BTC/USDT daily chart. Source: Cointelegraph/TradingView

The bears will try to pull the price to the 20-day exponential moving average ($105,453), which is a key level to watch out for. If the price rebounds off the 20-day EMA with strength, it suggests that the sentiment remains positive and traders are buying on dips. That improves the prospects of a retest of the $111,980 level. If buyers overcome the $111,980 resistance, the BTC/USDT pair could surge to $130,000.

Contrarily, a break and close below the 20-day EMA could strengthen the bears. The pair could then plummet to the psychologically crucial support of $100,000, which is likely to attract solid buying by the bulls.

Ether price prediction

Buyers could not push Ether (ETH) above the $2,738 resistance on May 27, but they have kept up the pressure.

ETH/USDT daily chart. Source: Cointelegraph/TradingView

The ETH/USDT pair has formed a bullish ascending triangle pattern, which will complete on a break and close above $2,738. That clears the path for a rally to $3,000 and later to the pattern target of $3,153.

This optimistic view will be negated in the near term if the price turns down and breaks below the 20-day EMA ($2,467). The failure of a bullish setup may trap the aggressive bulls, sinking…

Click Here to Read the Full Original Article at Cointelegraph.com News…