The crypto market rebounds strongly as Bitcoin and Ethereum test crucial resistance zones, buoyed by institutional inflows and improving risk sentiment.
Bitcoin (BTC) climbed above $112,500, while Ethereum (ETH) breached the $4,000 mark, marking a strong bullish rebound in the digital asset market. Both major cryptocurrencies are now testing critical resistance zones, signaling a potential trend shift if momentum continues. The rally follows renewed institutional demand and improving macroeconomic sentiment that has lifted overall risk assets.
The charts reveal BTCUSDT breaking through the upper boundary of its descending channel, currently testing a key resistance area between $112,000 and $114,000. Similarly, ETHUSDT has recovered above $4,000, approaching the $4,200–$4,300 resistance zone, where prior rallies have often met selling pressure.
BITX Market analysts attribute today’s upward momentum to strong capital inflows and a decline in U.S. Treasury yields, which have improved liquidity conditions across global markets.
“Bitcoin’s surge above $112,500 reflects renewed institutional participation,” said BITX market strategist. “We’re seeing consistent spot accumulation alongside options positioning that favors upside continuation.”
Ethereum’s price action mirrors Bitcoin’s, rebounding from its October lows near $3,700. Technical indicators show ETH consolidating within a falling wedge pattern, often a bullish reversal setup. A confirmed breakout above $4,300 could trigger a move toward $4,600, marking a potential medium-term recovery.
“Ethereum’s ability to hold above the $4,000 threshold is a key sign of strength,” According to BITX analysts. “If buyers sustain momentum, the next resistance around $4,300–$4,400 could come under pressure.”
Meanwhile, Bitcoin’s volume expansion and support at $107,000–$108,000 suggest buyers are stepping in aggressively. The broader crypto market capitalization has also risen, reinforcing confidence in digital assets amid easing inflation data and expectations of a more dovish central bank stance.
Both Bitcoin and Ethereum are now at pivotal junctures. Sustaining moves above their respective resistance zones could mark the beginning of a broader recovery phase across the crypto sector. However, analysts caution that a failure to hold these levels might invite profit-taking and short-term volatility.
For now, traders are closely watching whether BTC can establish support above $112,000 and ETH can maintain momentum beyond $4,000, which could define the next phase of the crypto market’s direction heading into November.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.