Cryptocurrency Technical Analysis: Charting the Recent Pullback

Bitcoin experienced a pullback from near all-time highs just days ago, prompting analysis of where the assets might be headed. Traders monitoring technical indicators can find insights here:

Bitcoin and Ethereum prices retreated after posting nearly all-time high prices recently—however, the questions about their trajectory persist. For those analyzing charts, here’s a breakdown of the technicals.

Bitcoin declined 1.2% to $107,369, while Ethereum dropped 0.96% to $2,746.

The initial surge above $110,000 for Bitcoin and near $2,880 for Ethereum quickly reversed following a slightly cooler-than-expected Consumer Price Index (CPI) report. The data indicated annual inflation at 2.4%, missing the previously forecasted 2.5%. This triggered a classic “buy the rumor, sell the news” reaction across crypto markets.

Decline Reflects Market Sentiment

Technical analysis confirms that while prices pulled back, the trend remains intact.

**Sentiment Indicator:** The Crypto Fear and Greed Index declined from 72 to 71, indicating a slight cooling of investor appetite despite an increasingly greedy environment.

Bitcoin: Consolidation Continues

The daily chart reveals Bitcoin is trading comfortably above the 50-day Exponential Moving Average (EMA50), part of an ascending channel that formed mid-May.

**Key Levels:** The structure implies the broader bullish case holds, as long as BTC remains within the channel. Key support is around $103,000, while resistance nears the previous all-time high of approximately $110,000.

Technical indicators offer measured assessments:

RSI (55): Neutral reading indicates a pause from highs but not an overbought state.
ADX (17): Suggests moderate trend strength, indicating consolidation rather than a clear explosive move.

The 50-day EMA trading above the 200-day EMA underscores the maintained longer-term bullish bias. A break below $103,000 acts as the pivotal test point.

Ethereum Shows Stronger Trend Resilience

Ethereum’s technical structure displays more bullish conviction compared to Bitcoin.

**Recent Pattern:** ETH broke through its consolidation channel, showing confidence by defending support near $2,400-2,700.

Indicators reflect a more bullish tone:

RSI (62): Suggests ETH is approaching overbought territory, potentially setting the stage for further upside.
ADX (25): Portends a more pronounced trend following than Bitcoin.

Trading opportunities exist around current price levels: entry points near the support zone ($2,400-$2,500) or a push toward resistance targets ($3,000 and $3,300) if earlier highs are surpassed.

Next Key Levels

Traders should monitor:

Bitcoin: $104,000 lower support to $110,000 overall resistance
Ethereum: Through $2,400 ($2,400–$2,500 support) to $2,880 resistance ($3,300 potential target)

Successful navigation of these levels could point toward significant institutional buying or prompt broader corrections.