Bitcoin & Ether Battle Resistance: Market Correction Looms - What’s Next for Crypto Bulls?

Digital assets face mounting pressure as market structure weakens

THE TECHNICAL SQUEEZE

Bitcoin struggles to reclaim key resistance levels while Ether faces similar headwinds. Trading volumes dip 15% across major exchanges as institutional money hesitates—typical Wall Street behavior, always late to the party.

CORRECTION WARNING SIGNS

Technical indicators flash caution across multiple timeframes. The 50-day moving average threatens to cross below the 200-day—a classic bearish signal that could trigger automated selling. Meanwhile, leverage ratios spike among retail traders, creating perfect conditions for a liquidation cascade.

THE BULL CASE PERSISTS

Despite short-term pressures, fundamental drivers remain intact. Network activity continues growing while institutional adoption metrics hit new highs—because nothing says 'mature asset class' like 20% daily swings.

MARKET OUTLOOK

Traders eye critical support levels that could determine the next major move. A break below current ranges might trigger deeper correction, while holding could setup the next leg higher. Either way, volatility's here to stay—welcome to crypto.

Bitcoin-led market dynamics

CoinMarketCap data further shows Bitcoin still rules the crypto market, making up 58.3%, while ethereum holds 11.8%, and all other coins share 30%. The current market drop is mostly driven by Bitcoin, but altcoins are starting to steady. Investor sentiment remains very cautious, with the Fear and Greed Index at 16, showing deep fear in the market.

Moreover, the Altcoin Season Index sits at 29, showing altcoins are trailing while Bitcoin grabs the most market attention. ETF activity is mixed: recent weeks saw outflows, but November 18 brought $4447 million outflows in crypto ETFs, hinting at lower institutional interest due to ongoing market swings.

Perpetual Futures markets show heavy trading, with $788.57 billion and 4.35 billion in open interest. Bitcoin’s implied volatility is 53.17, Ethereum’s 78.25, signaling high market risk. As analyst Bull Theory noted in his thread on X, Bitcoin’s movements mostly drive altcoin declines, but signs suggest altcoins may start stabilizing soon. 

Altcoins hold strength amid bitcoin sell-off

Analyst Bull Theory offered more insights on unusual altcoin behavior during this correction. He explained, “BTC breaking below $90,000 for the first time in ~7 months should have destroyed altcoins. But this time, alts are not collapsing with $BTC.” 

According to the analyst’s thread, structured institutional selling drove the initial BTC drop, followed by panic selling from retail traders. However, altcoins had already reached sellers’ exhaustion, which prevented broader collapse.

BTC breaking below $90,000 for the first time in ~7 months should have destroyed altcoins.

But this time, alts are not collapsing with $BTC.

This isn’t random.
There are clear reasons why alts are holding better, and the data supports it.

Let’s break it down. 👇🧵 pic.twitter.com/usNrH1Wk3S

He added, “Normally during a BTC crash, dominance spikes as traders run into BTC for safety. But right now, dominance is below the 50-week EMA. BTC dumping while dominance falls means alts are not being abandoned.” 

ETH/BTC recently lost its 50-week EMA but is now attempting recovery. This trend, combined with stronger altcoin performance, indicates that selling pressure is concentrated in Bitcoin, suggesting the market may be approaching a bottom.

Ethereum technical overview

Ethereum is still under pressure according to TradingView data on a 24 hour chart. Its price recently moved between $2,989 and $3,123. Technical indicator Bollinger Band, shows that volatility is shrinking and the trend is downward. 

Bollinger Bands shows price volatility using a moving average with upper and lower bands; wider bands mean higher volatility. Ethereum’s price is staying NEAR the lower band hence, it signals that selling pressure is still strong and buying interest remains weak. 

MACD readings stay negative, indicating dominant bearish momentum. The indicator usually shows trend and momentum by comparing two moving averages; crossovers signal potential buy or sell opportunities, with histogram indicating strength.

Crypto analyst crypto Patel shared insights on Ethereum, saying, “$ETH has locked in a downside BOS at $2,943 & Smart money is now pulling price into premium for mitigation. Next draw on liquidity: FVG $3,270–$3,363.” Meanwhile, MACD indicators stay in negative territory, showing ongoing bearish momentum. Past recovery attempts couldn’t break the middle Bollinger Band, highlighting sellers still control the market.

$ETH SMC Alert: Premium Repricing Triggered#ETH has locked in a downside BOS at $2,943 & Smart money is now pulling price into premium for mitigation.

Next draw on liquidity: FVG $3,270–$3,363.

If BOS holds, a ~15% corrective pump into this imbalance is the high-probability… pic.twitter.com/zwVb0xWGnR

Bitcoin and Ether are still facing tough times, but some altcoins are holding up better than expected. Big investors mostly sold Bitcoin, leaving altcoins less affected. This pattern suggests the market might be getting closer to the end of this correction.

Also Read: Dave Portnoy Buys $2M Worth BTC, ETH, and XRP Amid Market Crash