Bitcoin continued its recovery early this week, with prices gaining strength on the back of renewed optimism for a potential US–China trade deal. The rebound followed weeks of heavy selling, and on-chain data now suggests that bearish sentiment may have reached exhaustion. Glassnode noted that selling pressure appears to have peaked, opening the door for a possible shift in market momentum.

BTC has been consolidating near the upper end of its range, hovering close to its all-time high a sign that long-term holders are standing firm. The lack of follow-through selling below key support levels indicates that bulls are in no rush to exit their positions, betting instead on another leg higher. Still, traders should remain cautious as rallies near all-time highs often draw profit-taking. Galaxy Digital’s head of research, Alex Thorn, emphasized that while the broader bull structure remains intact, a decisive break below $100,000 could put that outlook at risk.

that buyers are taking charge once again. The 20-day EMA at $112,337 has started to slope upward, and the RSI sits in positive territory — both signs that momentum is shifting in favor of the bulls. There’s some resistance around $118,000, but if BTC clears that zone with conviction, a retest of the all-time high near $126,199 looks increasingly likely. For now, bears are on the clock. They’ll need to drag the price back below the 20-day EMA quickly to regain control. A close under the $107,000 support could flip sentiment and trigger heavier selling pressure, opening the door for a deeper correction. Until that happens, dips are likely to attract buyers looking to ride the next potential breakout. Ether also joined the recovery, closing above the 20-day EMA at $4,047 — a sign that selling pressure is easing. The next key challenge for the bulls is the 50-day SMA near $4,234, followed by the resistance line of the descending channel pattern. If buyers manage to punch through, ETH could rally toward $4,957 and possibly extend the move to $5,500, marking the next phase of the uptrend. On the downside, bears will try to force the price back below the channel’s support. A break below that level could drag ETH toward $3,350.

Trader’s Outlook BTC looks set to test the $118,000 resistance in the short term. A clean breakout could pave the way for a run at the all-time high, while failure to hold above the 20-day EMA may invite profit-taking and short-term pullbacks toward $107,000. ETH’s structure is improving, with momentum slowly shifting to the upside. A breakout above the 50-day SMA could trigger a move toward $5,000, but if bulls fail to maintain the current levels, a dip back to $3,700–$3,350 remains possible. Overall, both majors are showing early signs of bullish strength, but traders should stay alert for volatility as the market tests key resistance levels.

Lastly please check out the advancement’s happening in the cryptocurrency world

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