Bitcoin‘s recent surge seems to be waning as the price finds it difficult to sustain momentum above the $123,000 mark. Buyers were able to push Bitcoin to new local highs following a strong breakout from the $113,000-$115,000 consolidation zone, but the bullish tempo is obviously slowing down. Now a number of daily candles have lower volume and upper wicks, suggesting hesitancy among market players and a possible change in sentiment.
Echoing the slowdown are technical indicators. The RSI’s retreat from overbought territory indicates that buying pressure is abating, and the trend toward cooling is indicated by the closing gap between the short- and midterm moving averages. A classic indicator that the market may be moving from an impulsive rally to a consolidation phase is the 20-day EMA’s decreasing distance from the 50- and 100-day lines, even though it is still above them.
Prior to the subsequent significant move, such vertical climbs have historically, frequently preceded either a period of sideways accumulation or a healthy correction. Around $117,000 is the crucial support to keep an eye on as this is where the 50-day EMA and earlier resistance meet. A firm close below that mark would probably indicate that bears are taking back control, paving the way for deeper retracement zones close to $114,000 and, if selling pressure picks up speed, $107,000.
Although Bitcoin‘s long-term structure is still bullish, the market may need to reset, according to the short-term outlook. It is evident that momentum has slowed, and if bulls do not quickly regain their strength, the market may move in favor of sellers. It would be shocking to see a consolidation or pullback here; in fact, it might be required before any long-term upward movement can start up again.
Shiba Inu reaches key point
After almost four months of consolidation within a sizable symmetrical triangle, Shiba Inu has reached a critical point. Although the price action has tightened considerably, recent attempts to break out of the pattern indicate that bulls are losing ground. SHIB struggled below the 100-day EMA, a crucial dynamic resistance that keeps rejecting upward momentum because it was unable to secure a breakout despite a brief move toward the upper boundary.
Given the lack of significant buying pressure, this rejection at the 100 EMA is a bearish indication. The 200-day EMA is well above the current price levels, supporting the longer-term downward trend, and the moving averages are still stacked in a bearish alignment. Volume has also decreased, which is indicative of traders’ hesitancy and lack of conviction. Technically speaking, the symmetrical triangle usually functions as a continuation pattern, and the likelihood of a bearish resolution is higher as a result of the preexisting downtrend.
The token could see another decline toward the $0.00001200-$0.00001250 support area, which has served as a crucial floor in recent months, if SHIB is unable to regain the 100 EMA quickly. The market may be vulnerable to larger losses and possibly return to summer lows if there is a breakdown below that zone.
In general, it is unlikely that Shiba Inu will experience any short-term success. The absence of momentum, recurrent breakdowns at significant resistances and declining trading volume all suggest that the structure is deteriorating rather than preparing for a fresh bull run. It seems unlikely that SHIB will launch a sustained bullish breakout unless a powerful catalyst or volume spike steps in, indicating that investors may need to prepare for more consolidation or even another decline before any recovery phase starts.
Ethereum dives
Ethereum, which is currently trading just below the $4,700 mark, has recently surged, reviving optimism in the cryptocurrency market. ETH must first overcome three key local resistance zones, each of which corresponds to a previous peak that has rejected bullish attempts in recent months, before it can realistically challenge the eagerly anticipated $5,000 milestone. Around $4,750 — where ETH was rejected in early September — is the first significant obstacle. The second is approximately $4,850, which is the peak from late July.
Lastly, the psychological and technical ceiling of $4,950-$5,000 — where sellers have historically outperformed buyers — is the most significant resistance. A true bullish continuation would be confirmed and the way to new all-time highs would be opened if all three were broken. But it is not that easy. The Ethereum rally is beginning to show early signs of exhaustion despite the encouraging recovery.
The overall market is still unclear, though, as Bitcoin’s difficulties around $123,000 may make it more difficult for ETH to maintain its own breakout. Since ETH is trading above both its 50-day and 100-day EMAs, the moving averages are currently supportive. But in the absence of a strong surge in volume and confidence, this structure runs the risk of turning into yet another botched recovery attempt rather than a long-term bull run.
To put it briefly, Ethereum’s route to $5,000 is technically straightforward but essentially difficult. The most likely scenario is a brief stall or even a pullback as the market processes recent gains and reevaluates its appetite for another significant leg upward, unless bulls can decisively break all three local peaks.
