Market Review of Altcoins

As shown in our previous market review, altcoins are still struggling. The market is moving toward an inflection point as the next move could be fundamental for multiple assets. Solana is showing signs of rally exhaustion, while Ethereum is entering a potential stalemate. However, despite a negative altcoin scene, Bitcoin may be pushing higher with a new bullish pattern.

Bitcoin’s Key Pattern

Bitcoin may be forming the cup-and-handle, a well-known bullish pattern in technical analysis. Although not yet confirmed, the pattern appears on the daily chart, indicating that after weeks of volatile price action, digital gold may be gearing up for a brief reversal.

BTC fell, consolidated, and then steadily recovered to retest resistance levels close to $114,000 during the cup portion of the pattern, which formed between mid-August and early September. The subsequent brief decline resembles the start of the handle, a period of consolidation that frequently precedes a breakout. Key factors right now are:

• Technically, Bitcoin might surpass the $114,000 resistance and aim for the $118,000-$120,000 range if the handle completes and buyers enter with conviction.
• The 50-day EMA has been capping rallies recently, located in that zone.
• Following a correction from highs above $124,000, a successful breakout would confirm the cup-and-handle and reestablish bullish momentum.
• However, Bitcoin is vulnerable to a deeper retracement toward $104,000, the 200-day EMA, if the pattern fails to hold the $110,000-$108,000 support area.

Short-term traders should monitor the $114,000 neckline. BTC’s next upward move could launch from current consolidation if a breakout above it solidifies the mini cup-and-handle formation.

Ethereum’s Pivotal Level

Ethereum’s price structure is at a turning point. It has deviated from its steady upward pattern of higher highs and higher lows for the first time since its spectacular rally began earlier this summer. The asset is currently trending sideways, which may indicate an impending reversal.

Both the 20-day and 50-day EMAs had supported Ethereum’s strong upward channel since mid-July. New purchases followed each decline, resulting in a stairway rally that saw ETH reach $4,800. However, recent price candles indicate a divergence from this bullish trend, with ETH struggling to regain momentum, being trapped between $4,200 and $4,500.

This sideways movement raises concerns about potential waning demand. If ETH drops below the $4,200 level, the next reasonable support is around the 100-day EMA near $4,000. A decline beneath this would risk further retracement toward $3,600, indicating the rally’s structure may be broken.

Consistent volume decline supports the notion of market retreat. Sideways price action often resolves to the downside, absent significant inflows. The $4,200 zone remains essential; maintaining this level and breaking above $4,500 with strong volume could revive the bullish story.

Solana Rally Ends?

A lower high is forming on Solana’s chart, suggesting that the asset could be getting tired. After months of gains showing higher highs since July, this development could indicate the beginning of a significant trend reversal and the end of the current bullish cycle.

SOL recently peaked around $210 but failed to surpass its August high of about $225. The price action rolled over, producing a lower high, a classic sign of waning bullish momentum. Each high typically surpasses the previous one in a healthy uptrend, but this break indicates inadequate buying pressure to push Solana higher.

Declining trading volume further heightens concerns. Enthusiasm has waned, indicating market participants are hesitant to participate in the rally despite the price remaining above the psychological $200 threshold. A loss of momentum is reflected in the flattening Relative Strength Index (RSI).

If Solana fails to recover the $225 level in the near future, a confirmed trend reversal could occur. A break below $196, a crucial short-term support, might lead to further declines toward $185 and the 100-day EMA around $176. A more substantial move could even test the 200-day EMA at approximately $170, undermining the long-term bullish argument.

Currently, the upward trend is on life support. A significant push above $210-$215 is necessary for bulls to regain confidence. Otherwise, Solana’s lower high might signal the start of a longer-lasting bearish phase that could shift market sentiment in the months ahead.

Across Bitcoin, Ethereum, and Solana, price action is tightening around levels that could determine market direction in the coming weeks. A confirmed breakout would restore confidence in the uptrend, while failure to hold support risks decisively shifting sentiment bearish.