Bitcoin and Altcoins Breakout as Stock Market Momentum Fades – BTC, ETH and SOL Outlook

• Bitcoin breaks out higher and drags the Crypto Market with it
• With Cryptos being sold off, early, could see attraction as other assets trade to elevated all-time highs
• Ethereum and Solana are facing a key test for a general market rally

Crypto is back in beast mode today after a 1.5-month-long consolidation across all major tokens.

Digital assets have a funny way of fading into the background when interest and prices drop, often following a few crashes or scandals.

And make no mistake—the latest correction was no small matter.

Bitcoin, the most sought-after and respected crypto, corrected by 36%, with the Total Crypto Market Cap suffering a similar drop.

Others were hit even harder, with 50% corrections seen in XRP and Solana, and brutal 70% drops in names like Cardano.

But zooming out, Cryptos actually led the sensational rally that eventually spread to other assets.

Bitcoin kicked off the 2024-2025 frenzy as early as January 2024, trading at $40,000 before peaking at $126,000 19 months later – a +3X increase.

As a matter of fact, looking at past cycles, cryptocurrencies have often acted as a leading indicator, rising and falling weeks or even months before other asset classes.

This happens for a simple technical reason: they sit at the very top of the risk spectrum.

Consequently, they are the first to see demand dry up when uncertainty arises—conditions we saw clearly during the October-November period as layoffs rose and fears of an "AI Peak" bloomed.

So, where do things stand now?

Digital assets have been largely off the radar since November, with volatility staying surprisingly contained.

However, with stocks hovering at all-time highs and metals posting record performances, Cryptocurrencies could be primed for some mean-reversion higher.

As geopolitical uncertainty looms and the Fed's independence comes under fire yet again, traders may look to crypto for risk diversification in assets that have corrected already – Expect things to remain volatile in this environment.

Let's dive right into the Daily Charts and technical levels for Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).

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Bitcoin is now breaching its 50-Day Moving Average on strong momentum after an initial test last week.

Supported by the forming of an uptrend (higher lows, strong trendline) and confirmed by a bounce on neutral from the RSI Index, the path for a higher retest is forming.

Two tests will be coming for Bitcoin:

• Breaking the January 5 highs ($94,810) – Short-term test (looks close to breaking)
• Passing the test of the $100,000 resistance.
  • This one will need a review if prices get there. A huge psychological resistance which will surely dictate risk-appetite for Cryptos in 2026.

Levels of interest for BTC trading:

Support Levels:

• $88,000 to $93,000 major support turned Pivot (breaking out)
• 50-Day MA ($92,200, broken this morning)
• Past Week Lows and Uptrend $89,340
• $85,000 mid-term Support (+/- $1,500)
• $75,000 Key long-term support

Resistance Levels:

• Highs to break $94,810 (short-term resistance)
• $98,000 to $100,000 Resistance
• $104,000 200-Day MA
• Resistance at previous ATH $106,000 to $108,000
• Current ATH Resistance $124,000 to $126,000

Ethereum is now looking a bit less strong compared to its older brother but this could still be quite positive – A triangle formation will help to spot the direction of an imminent breakout.

Showing similar RSI developments as BTC, Ethereum should see its price blaze as long as bulls manage to break above its 200-Day Moving Average, coming in as an immediate test ($3,216).

A rise in ETH could also help the broader altcoin market to rally.

Levels of interest for ETH trading:

Support Levels:

• 50-Day Moving Average $3,100
• $3,000 to $3,200 Major momentum Pivot (Test of the $3,000)
• $2,500 to $2,700 June Key Support (November lows)
• $2,620 Session and weekly Lows
• $2,100 June War support
• $1,385 to $1,750 2025 Support
• 2025 Lows $1,384

Resistance Levels:

• $3,216 200-Day MA (Immediate test)
• $3,300 breakout region
• $3,500 (+/- $50) Key Resistance
• $3,800 September lows
• $4,000 Dec 2024 Top Main Resistance zone
• $4,950 Current new All-time highs

Solana is forming an interesting uptrend to follow its peers but seems to lack a bit of momentum.

However, with the current rally being young in global crypto, it may easily catch up as it trades well above its 50-Day MA ($132.00).

SOL Bulls will want to see a clean break above $147.00 for hopes of a renewed bull cycle.

Levels to keep on your SOL Charts:

Support Levels:

• Upward trendline ($138)
• Main Support $125 to $130
• Weekly lows $123
• $100 to $115 Main support

Resistance Levels:

• Highs to breach $146.93
• $140 to $150 Major Pivot (testing)
• Channel highs and October Pivot resistance $165 to $170
• $180 to $190 Resistance
• Psychological level $200 to $205
• $253 Cycle highs

Safe Trades!

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