Bitcoin continues to face significant resistance at the key $120,000 price level despite demonstrating strong underlying support near $116,000. Repeated attempts to breach $120,000 have so far been unsuccessful, reflecting persistent selling pressure at this psychological barrier.
Ethereum, meanwhile, exhibits neutral momentum hovering near the $4,000 mark. Its price action is characterized by consolidation within a relatively tight range just below this significant threshold. This stalling effect occurs despite positive tailwinds supporting the broader cryptocurrency market.
Institutional capital inflows and optimistic regulatory developments, particularly within the United States, are significant drivers fostering overall cryptocurrency adoption. However, this supportive backdrop has not yet provided sufficient impetus for either asset to decisively overcome their respective major resistance zones.
The near-term trajectory of the crypto market is expected to be heavily influenced by upcoming macroeconomic indicators from the US. Key inflation and employment data releases, coupled with the Federal Reserve’s monetary policy outlook, are anticipated to be critical factors shaping investor sentiment in coming weeks.
Market sentiment currently trends cautious. Investors are weighing the supportive developments against potential risks, including the possibility of a USD short squeeze. Such an event could negatively impact risk assets broadly, including cryptocurrencies, adding a layer of uncertainty to the market outlook.