Bitcoin and Major Cryptos Fall Amid Profit-Taking, Market Consolidation Signs
Bitcoin (BTC) and major cryptocurrencies saw a pullback of over 3% following Tuesday’s rally, as investors took profits during the Asian trading hours on Wednesday. This market correction comes after a strong 7-day recovery, with the total crypto market capitalization down by 3.3%, dipping from a high of $84,200 to nearly $83,500 for BTC.
Ether (ETH) and Cardano’s ADA experienced declines of up to 5%, leading the losses among the top cryptocurrencies. Despite this dip, the overall crypto market still posted an 8% gain over the past week, stabilizing around the $2.7 trillion mark since the weekend.
According to Alex Kuptsikevich, senior analyst at FxPro, further upward movement could trigger optimism for continued gains. However, the sustainability of this rally will only be confirmed if the market consolidates above its 200-day moving average, which stands around $2.97 trillion.
“Bitcoin continues to show signs of gradual recovery, trading above its 50-day moving average and testing levels around $85,700. This technical development indicates an attempt to reverse the downtrend. Interestingly, the 200-day moving average is approaching, and a confirmation above it could quickly confirm a trend change,” Kuptsikevich said. However, he added that BTC has entered a resistance zone where the strength of the rebound could fade.
Solana (SOL) Displays Strength Amid Market Volatility
Despite the broader market’s struggles, Solana (SOL) is showing relative strength. Kuptsikevich noted that Solana has been recovering faster than many other major altcoins, recently trading near its 50-day moving average around $130. If SOL manages to consolidate above this level, it could open the path for further gains toward $145, a previous resistance zone. A breakout above $145 could potentially push the price toward $180, signaling a shift in the downtrend.
Bitcoin’s Recovery Faces Doubts from Technical Analyst
However, not all market participants are optimistic. Veteran chartist Peter Brandt cast doubt on the idea of Bitcoin reaching new highs in the current cycle, dismissing a trendline violation as a meaningful signal for trend reversal. In an X post, he reminded followers that trendlines are subjective and less reliable than other technical indicators, such as moving averages.
“A trendline violation does NOT signify a transition of trend, BTC. Sorry,” Brandt wrote, further explaining that many amateur chartists overemphasize trendlines, which he believes are among the least significant chart patterns.
Dogecoin Whale Activity and Technical Levels
Turning to Dogecoin, whale activity has been notable, with large holders accumulating over 800 million DOGE in the last 48 hours. This suggests some short-term confidence in the asset, but the price is hovering around a critical level of $0.154-$0.155. Immediate resistance is at $0.157, while key support sits at $0.153. DOGE’s price action has shown significant volatility, peaking at $0.169 before entering a downtrend, but the 48-hour Fibonacci retracement suggests consolidation is possible before the next move.
A sharp 1.1% sell-off occurred during a brief window, and the price has since bounced back to form a potential double bottom at $0.153, indicating some accumulation is occurring.
Solana’s Ongoing Consolidation and Volume Analysis
Solana’s price action has displayed notable volatility, consolidating between $125 and $132 after a 13.7% surge. SOL has been leading decentralized exchange (DEX) volumes, surpassing Ethereum for three consecutive days, with $2.43 billion in trading activity. However, volume analysis suggests that buying interest is waning, and Solana is now testing its 50-hour moving average at $129.80, which could act as a pivotal support level.
Cardano Faces Major Volatility
Cardano (ADA) experienced significant price swings, jumping from $0.618 to a peak of $0.667, an 8% range, before correcting. It is now consolidating between $0.605 and $0.615, with increasing volume during downward movements suggesting persistent bearish pressure. The 200-hour moving average is now acting as overhead resistance, reinforcing the bearish sentiment. Despite oversold conditions indicated by 48-hour momentum indicators, selling pressure remains strong.
In summary, while Bitcoin and major cryptocurrencies are taking a breather after recent rallies, altcoins like Solana are showing strength amid market consolidation. Meanwhile, Dogecoin’s whale activity and Cardano’s volatile session offer mixed signals as traders wait for further clarity on the direction of the market.
