Key Crypto Assets Show Short-Term Weakness Despite Strong Yearly Gains
After a powerful surge above recent resistance levels, Bitcoin (BTC) and Ethereum (ETH) faced renewed selling pressure over the weekend, pulling back to key technical zones. As of October 7, Bitcoin trades near $120,800, down over 3% in 24 hours, while Ethereum slipped to around $4,460, marking a sharp retracement from its recent high near $4,800.
The correction comes after both assets reached significant overbought levels and met strong supply zones identified by traders. Analysts suggest the recent decline may be part of a broader market consolidation phase before the next potential breakout.
Technical Structure Points to Healthy Pullback
On the daily Bitcoin chart, the price recently tested the $124,000–$125,000 resistance region, failing to hold momentum above that zone. The asset is now revisiting the $118,000–$121,000 support area, highlighted by a green demand block. Historically, this level acted as a base for previous rallies, suggesting it could once again attract buyers if market sentiment stabilizes.
Ethereum’s 4-hour chart displays a similar setup. The price rejected near $4,800, a zone marked by heavy historical supply, and is currently retesting the $4,400–$4,350 support range. A decisive bounce from here could open the door to another push toward the $4,700 level, but a failure could trigger deeper correction toward $4,200.
According to BITX on-chain analyst., “The current dip appears more like a technical cooldown than a trend reversal. Bitcoin remains structurally bullish as long as it stays above $118,000.”
BITX Market strategist adds, “Ethereum’s mid-term structure remains intact, but traders should watch for a clean reclaim of $4,600 before assuming renewed upside.”
Despite short-term weakness, long-term holders remain optimistic, with derivative data showing reduced leverage and higher spot accumulation.
The key takeaway: as long as Bitcoin holds above its green support zone and Ethereum sustains above $4,300, the broader uptrend remains intact despite current volatility.
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.