Bitcoin and Ethereum: A Game of Breakouts and PullbacksBitcoin successfully broke through a small-scale head-and-shoulders pattern on the 4-hour chart and retested the downtrend line and resistance area above. While this surge last night was swift, there is a risk of a pullback, as the daily chart still shows supply at the resistance level
Bitcoin and Ethereum: A Game of Breakouts and Pullbacks
Bitcoin successfully broke through a small-scale head-and-shoulders pattern on the 4-hour chart and retested the downtrend line and resistance area above. While this surge last night was swift, there is a risk of a pullback, as the daily chart still shows supply at the resistance level. Therefore, although the resistance has been broken, it is still worth watching how the subsequent trend develops and whether it can break through the triangle convergence pattern. From a long-term perspective, the future trend is likely to continue to rise, and the probability of a breakout of the triangle convergence structure is high.
In the short term, Bitcoin prices have repeatedly tested the resistance above, but supply still exists. To break through, it may require a consolidation or pullback to adjust. However, since the converging structure is nearing its end, the adjustment period may not be long.
Ethereum also saw a significant surge last night, approaching the resistance level above. However, judging from the performance of the resistance level, supply remains relatively large, and the rapid rise may also face pullback risk. Therefore, Ethereum has returned to a pullback trend. Although the Daily chart shows a positive candle yesterday, the upper shadow is long, indicating that supply still exists and the risk of a pullback has not been eliminated.
Bitcoin 4H Chart:
[Insert Bitcoin 4-hour chart]
Ethereum 4H Chart:
[Insert Ethereum 4-hour chart]
Overall, both Bitcoin and Ethereum have experienced a game of breakouts and pullbacks. Although the long-term trend is bullish, the short-term pullback risk still exists. Therefore, investors need to closely monitor market fluctuations and operate according to their own risk tolerance. BTC ETH Cryptocurrency MarketAnalysis Trading
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