Bitcoin (BTC) Back at ATH: Next Target, Dogecoin (DOGE) Volume Disappears, Ethereum (ETH) Hits $4,000, But There's a Catch

The market leader has made a significant comeback, as Bitcoin has risen to a new all-time high of $106,000. Strong market fundamentals and increasing institutional interest have supported investor sentiment, as evidenced by this breakout, which highlights Bitcoin's ongoing momentum.

As Bitcoin open interest hits an all-time high of $67 billion, the spike to $106,000 is a blatant indication of heightened interest in derivatives markets. Because leveraged positions magnify both upward and downward movements, elevated open interest can increase volatility, even though it usually indicates strong speculative activity.

The next significant resistance level for Bitcoin after this remarkable ATH is probably around $110,000. There may be a lot of selling pressure at this psychological barrier as investors try to lock in profits. The next target would move toward $120,000 if Bitcoin keeps up its bullish momentum and breaks through $110,000, helped by growing institutional inflows and widespread adoption.

Bitcoin has solid support on the downside close to the $98,000 mark, where buyers have defended important levels in the past. If a brief retracement happens, the 50 EMA on the daily chart, which is presently trading at about $97,000, will offer an extra layer of support for Bitcoin. The market as a whole has risen since Bitcoin's return to its all-time high, which has increased hope for altcoins.

In the past, as investors look for chances for larger returns, new highs for Bitcoin have caused capital to shift into alternative assets. This situation might recur, with Ethereum and other significant altcoins profiting from the optimism surrounding Bitcoin.

Dogecoin final retrace

A worrying drop in trading volume and volatility is currently being observed by Dogecoin, suggesting that the asset's price action is lacking momentum. Despite holding support at $0.39, DOGE has stalled below its upper resistance level at $0.42 following a run of remarkable gains. Reduced investor interest or reluctance to commit to larger positions, which frequently results in price movements stagnating, is reflected in the chart's declining volume.

Additionally, there is less volatility, which indicates a narrower trading range. This may indicate that DOGE is preparing for its next major move by consolidating. Although recent attempts to retest the upper boundary have failed, the asset is still within a parallel ascending channel. A rebound in buying volume and increased bullish sentiment are necessary for Dogecoin to break through the $0.42 resistance and make a significant upward breakthrough.

On the down side, the price may test the next critical support, which is located around $0.34, if DOGE is unable to maintain its current support level. The 50 EMA, a frequently watched indicator that frequently serves as a buffer during retracements is in line with this region. The price may be pulled toward the $0.27 level, where the 200 EMA offers longer-term support, if it drops below this zone, which could lead to additional selling pressure.

The current low-volume environment advises investors to exercise caution. The mood of the market as a whole, and whether volume increases in the days ahead, will probably determine breakouts in either direction. Will a push toward $0.50, a psychological level that traders are keeping a close eye on, be possible if Dogecoin can regain its momentum and break above $0.42？

Ethereum pushes again

By pushing toward the $4,000 mark, Ethereum has demonstrated its strength and tenacity. Nevertheless, there was psychological resistance to the price that led to a slight decline. This retracement shows that Ethereum is facing selling pressure, as buyers are hesitant to maintain momentum above this crucial threshold and traders are taking profits. With price action constantly above its main moving averages, ETH is still bullish overall on the chart.

The fact that the 26 EMA is still functioning as dynamic support suggests that Ethereum is still rising. Even so, the volume profile indicates a drop in buying pressure, indicating a lack of conviction to make a sharp move above $4,000. The recent overextended rallies in which Ethereum saw steady gains without a notable correction are primarily to blame for this retracement.

As ETH tests this resistance level, traders are probably halting to reevaluate. If Ethereum is unable to rise above $4,000, it may retrace to the 50 EMA, which is the closest support zone at $3,677. Whether Ethereum can continue on its upward trajectory or undergo additional consolidation will depend on this level.

If Ethereum breaks through the $4,000 barrier with a significant volume increase, the next target could be between $4,200 and $4,500, where momentum might pick up even more speed. But a greater retracement toward $3,300, a solid support zone that coincides with the 200 EMA, might be possible if there is a breakdown below $3,677.

Although Ethereum's price action is still encouraging, overall, more buying volume is needed for a distinct breakout. Investors should closely monitor whether bulls can withstand pressure in the upcoming days and keep an eye on the $4,000 resistance. Despite its recent bullish rally, Ethereum's recovery is still in its infancy until then.