Bitcoin falls below $120,000 while Ethereum dips to $4,200 amid technical corrections and waning bullish pressure.
The cryptocurrency market entered a cooling phase this week, with Bitcoin (BTC) and Ethereum (ETH) both facing renewed selling pressure after their recent rallies. Bitcoin has dropped below the $120,000 mark, retesting a major support zone highlighted by technical analysts, while Ethereum has slid toward the $4,200 level, suggesting a temporary pause in bullish momentum.
According to market structure, Bitcoin’s recent pullback aligns with a retest of the green support region between $118,000 and $120,000, which previously acted as resistance before the breakout in late September. This zone now serves as a potential demand area where buyers could attempt to regain control. On the upper side, the red resistance band near $123,000–$124,000 remains a strong supply zone, as seen in previous failed attempts to break higher.
BITX Technical analyst suggests this correction was not unexpected. “After a rapid climb above $123,000, Bitcoin entered a natural retracement phase,” one expert noted, emphasizing that cooling momentum after strong upward movements helps reset indicators like the RSI and moving averages. The market’s reaction around the current support could define short-term sentiment — a bounce may confirm continued bullish structure, while a breakdown below $118,000 could expose deeper levels near $110,000.
Ethereum mirrors Bitcoin’s trajectory, dropping to the $4,200 support region, a level previously identified as a major accumulation zone. The asset faced rejection from the $4,750–$4,800 resistance area, marked by heavy profit-taking and weaker demand at higher levels. BITX Analysts highlight that Ethereum remains within a broader consolidation range, with potential for recovery if it maintains support above $4,150.
“The crypto market is entering a short-term equilibrium after aggressive rallies in both BTC and ETH,” said BITX strategist. “These pullbacks are technically healthy as long as key supports hold.”
Overall, Bitcoin’s defense of $120,000 and Ethereum’s stability near $4,200 will be pivotal in determining whether the recent uptrend resumes or gives way to a deeper correction. Traders are closely watching these levels for confirmation of trend strength in the days ahead.
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.