According to market analyst Gareth Soloway, chief strategist at Verified Investing, Bitcoin is hovering around a crucial technical level, raising the risk of a deeper pullback if support fails.
Soloway said that while he has largely remained bullish on Bitcoin in recent months, but the current price action shows that the market is in a make-or-break zone. Bitcoin briefly fell below a trendline earlier this week before bouncing back above it, a development he described as encouraging but far from decisive.
“The bigger pattern still matters,” Soloway said, noting that the recent short-term uptrend is in a larger bearish formation. “If Bitcoin confirms a break below this level, downside risk will emerge quickly.”
Bitcoin faces the risk of a deeper pullback
According to Soloway’s analysis, a confirmed outage could push Bitcoin towards a lower support range between $74,000 and $69,000. He pointed to several historical price inflection points in that area and suggested that this area would act as the next major zone where buyers could intervene.
At the same time, he emphasized that a malfunction has not yet been confirmed. If Bitcoin manages to hold the current trendline and move higher, the bearish setup could fail. A move back above the upper limit of the current price channel would negate what he described as a classic bear flag pattern and restore bullish momentum.
Ethereum Tests Crucial Support
Ethereum shows a similar technical picture, Soloway said. The token is trading near a short-term support line that has held multiple times in recent weeks. A confirmed break below this level, he warned, could send Ethereum towards its next major support near $2,100.
“If that level collapses, the downward trend could accelerate,” Soloway said. On the upside, any recovery is likely to encounter resistance along a descending trendline that has capped recent rallies.
XRP is holding strong, but support is critical
XRP has been more volatile after a short-term breakout earlier this month was followed by a sharp pullback. Soloway said the focus now is on a well-defined support zone between around $1.77 and $1.61.
“As long as that zone holds, bulls still have a business,” he said. However, a decisive break below that range could expose XRP to much bigger losses, with little meaningful support until much lower levels. On the upside, Soloway identified $2.20 as the first major resistance zone that traders should keep an eye on.
“I don’t care if I’m bullish or bearish,” he said. “The charts tell us where the opportunities lie, and right now several major crypto assets are at levels that require close monitoring.”
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