Bitcoin's Bounce Gets Cautious as Ethereum Sends Bearish Signal
Bitcoin's recent bounce is being eyed with caution as Ethereum sends a bearish signal. While Bitcoin has shown short-term strength, it hasn't confirmed further upside by moving above its range high and taking buy-side liquidity. This creates a bearish SMT divergence between the two cryptocurrencies.
Ethereum made a higher high while Bitcoin failed to follow suit, indicating that the recent strength in BTC isn't fully supported by ETH. In a healthy move higher, correlated assets usually confirm each other, but here, ETH has already taken the highs while BTC hasn't.
Bitcoin's bullish CRT setup is attracting longs, with traders buying after the lower liquidity was taken and the price moving toward the range high. However, this setup also builds liquidity, which can turn into fuel for the next move down if BTC fails at the range high.