Bitcoin’s recent surge in liquidity has sparked volatility across the market, leaving traders cautious as Ethereum shows signs of potential recovery. As BTC struggles to stabilize after breaching key liquidity levels, ETH is attempting to reclaim crucial resistance, setting the stage for what could be the next big directional move in the cryptocurrency market.
Market weakness persists after liquidity sweep of $116,000
Can Özsüer, in his latest update of the current BTC 1H chart shared At X, he highlighted that Bitcoin’s hourly chart shows little to no bullish reflection at the moment. He noted that market sentiment has weakened, particularly after the $116,000 liquidity zone was cleared, further clouding the outlook across the broader crypto market.
According to Özsüer, the overall setup remains fragile and taking long scalp positions in such conditions could be risky until a clearer reversal structure starts to form. Özsüer identified the $111,000 level as a potential zone for initial reaction buying, suggesting that some short-term support could emerge at this point. However, he warned that if this level does not hold, Bitcoin could see a steeper decline towards trendline support near $109,000.
Furthermore, he advised that traders build their strategies carefully, focusing on the zones within what he called “box number 1.” This area could provide a technical framework to identify potential entry points and manage risk effectively.
In conclusion, Özsüer noted that the cleanest and safest approach would be to align trading plans around optimal price levels, while ensuring that positions remain protected above the defined support structure.
Bullish Momentum Increases If $4,200 Rebounds
As Bitcoin Faces a Possible Crash, Crypto Analyst Ted Pillows revealed that ETH is currently involved in a critical fight to reclaim the $4,200 resistance zone. The success of this immediate technical battle is crucial as it will determine the trajectory of the asset in the coming days.
Ted Pillows described the conditions for the continuation of the rally; If Ethereum is able to decisively reclaim and hold the $4,200 level, traders should “expect further bullish continuation.” Overcoming this resistance would likely point a clear path towards the next higher price objectives.
On the contrary, if ETH fails to secure the $4,200 zone, the price is likely to pull back. The analyst predicts that this failure would trigger a necessary retest of the $4,000 level before the market can attempt further bullish moves, indicating that $4,000 acts as a crucial line of defense against a deeper correction.
