Bitcoin Rally Halted by Ethereum Bearish Signal at Critical Resistance Level
The recent rally in Bitcoin is facing a warning sign as Ethereum sends a bearish signal. According to data from Bitget, Ethereum has moved above its range high and taken buy-side liquidity around $2,526, $2,530 before falling back, while Bitcoin has failed to make the same move.
This creates a bearish SMT divergence between the two cryptocurrencies, as Ethereum made a higher high while Bitcoin failed to confirm it. This tells us that the recent strength in BTC is not fully supported by ETH.
Ethereum's move above its range high and subsequent fall back below $2,526, $2,530 suggests that it may be more of a liquidity grab than the start of a strong breakout. Bitcoin, on the other hand, has built up bullish CRT with its recent price action, which shows buyers stepping in after lower liquidity was taken.
The bullish setup for BTC is simple: sell-side liquidity sweep → bullish reversal → move toward the range high. However, this move is also building liquidity, and if BTC fails at the range high and turns lower, those long positions become fuel for the next move down.