Bitcoin’s recent liquidity flush has stirred volatility across the market, leaving traders cautious as Ethereum shows signs of a potential recovery. While BTC struggles to stabilize after clearing key liquidity levels, ETH is attempting to reclaim crucial resistance, setting the stage for what could be the next major directional move in the crypto market.
Market Weakness Persists After $116,000 Liquidity Sweep
Can Özsüer, in his latest BTC 1H Current Chart update shared on X, highlighted that the hourly chart of Bitcoin shows little to no bullish reflection at the moment. He pointed out that market sentiment has weakened, particularly after the $116,000 liquidity zone was cleared, which further dampened the outlook across the broader crypto market.
According to Özsüer, the overall setup remains fragile, and taking scalp long positions in such conditions could be risky until a clearer reversal structure begins to form. Özsüer identified the $111,000 level as a potential zone for an initial reaction buy, suggesting that some short-term support could emerge around this point. However, he cautioned that if this level fails to hold, Bitcoin could experience a sharper decline toward the trendline support near $109,000.
He further advised that traders should construct their strategies carefully, focusing on the zones within what he referred to as “box number 1.” This area could provide a technical framework for identifying potential entry points and managing risk effectively.
To conclude, 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 Builds If $4,200 Is Reclaimed
While Bitcoin faces a potential drawdown, crypto analyst Ted Pillows revealed that ETH is currently engaged 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 asset’s trajectory in the days to come.
Ted pillows outlined the condition for a continuation of the rally; if Ethereum is able to decisively reclaim and hold the $4,200 level, traders should “expect more bullish continuation.” Conquering this resistance would likely signal a clear path to the next higher price targets.
Conversely, should ETH fail to secure the $4,200 zone, the price will likely retreat. The analyst predicts that this failure would trigger a necessary retest of the $4,000 level before the market can attempt any further upward moves, indicating that $4,000 acts as the crucial defense line against a deeper correction.
Featured image from Unsplash, chart from Tradingview.com
