The cryptocurrency market is heading into the weekend following a dramatic relief bounce, with Bitcoin and Ethereum displaying notably different recovery patterns after a severe sell-off. Bitcoin's price is stabilizing after a deep plunge, while Ethereum is attempting a more aggressive rebound from a steeper breakdown.
Bitcoin's price action shows it is trapped within a falling wedge pattern after breaking down from a horizontal consolidation. Despite a rebound from the $62,200–$63,000 demand zone, BTC has failed to break key resistance and was halted at the $72,000 level. As of the latest data, Bitcoin is trading near $68,200. The broader structure remains bearish, with the price near the mid Bollinger Band (~$69,700). The Relative Strength Index (RSI) has recovered to around 40, easing from oversold conditions but still indicating stabilization rather than a trend reversal. For bulls to regain control, a clean reclaim above the $70,000–$72,000 zone is necessary; failure to hold $68,000 risks another test of lower support levels.
Ethereum's performance has shown stronger relative momentum in the short term. ETH plummeted from above $3,000 to under $1,800 during the crash but has since sharply rebounded to reclaim the $2,000 level. However, its recovery is capped below the former support zone of $2,150–$2,170. Technical indicators like the MACD curling upward and a slightly positive Chaikin Money Flow (CMF) hint at improving short-term participation. Despite this, ETH's bounce is seen as a recovery from a deeper structural breakdown, not a confirmation of a new bullish trend.
The key question for traders is whether this move signals an early rotation into Ethereum or if Bitcoin will continue to dictate market direction. Analysts conclude that directional control still sits with Bitcoin. As long as BTC holds above the $68,000 area, it will dictate overall market risk appetite. Ethereum's outperformance is considered beta-driven and dependent on Bitcoin maintaining its range; any weakness in BTC is likely to impact ETH more severely.
The total crypto market cap has recovered over $100 billion since its multi-year low on Friday morning, standing at approximately $2.4 trillion. Bitcoin's market dominance has slipped to 56.6%. Other major altcoins like Solana (SOL), Bitcoin Cash (BCH), and Monero (XMR) also saw green on a daily scale, attempting to rebound from their own lows.
