Bullish Sentiment Meets Resistance in BTC and ETH

Both Bitcoin and Ethereum are approaching key resistance areas while sentiment in the market is growing increasingly bullish.

The price of BTC is touching the top of its upward channel, marked by a red line on the chart. However, volume has been decreasing on the push higher, which can be an indication of buyer exhaustion.

Ethereum, on the other hand, is struggling to break through resistance at the red line supply zone. Despite earlier heavy sell volume, recent candles show minimal trading activity.

Market participants are advised to exercise caution when major overhead supply is met with overly bullish sentiment. This can lead to a sharp pullback, potentially flushing out late high-leverage longs and providing market makers with an opportunity to buy cheap liquidity below support.

For those holding spot positions in the long term, it's essential to note that the bigger trend remains strong above major EMAs. However, chasing or sitting on heavy leverage right into resistance carries significant downside risk.