The cryptocurrency market started the week with renewed bullish momentum as Bitcoin reclaimed the $79,000 level and Ethereum pushed toward $2,400. The total market capitalization climbed to $2.64 trillion before settling around $2.60 trillion, while trading volume increased from $96 billion to nearly $120 billion, indicating heightened trader participation.
Bitcoin faced heavy selling pressure near the $79,000–$80,000 resistance zone, a level that previously triggered a market decline. Despite the rejection, the broader structure remains constructive. Ethereum saw a fresh leverage reset as open interest dropped across major derivatives exchanges. According to CryptoQuant analyst Amr Taha, Ethereum's 30-day open interest change returned close to levels last seen during the April 2025 reset phase. Gate.io led the leverage flush with a 30-day open interest change of approximately -461,000 ETH, while Binance also recorded a reduction of about -81,200 ETH in derivatives exposure.
The leverage reduction reduces forced-position pressure and creates a cleaner setup for Ethereum's next major move. Market analyst Ali Charts noted that the SuperTrend indicator flashed a buy signal for ETH for the first time since May last year. Ethereum traded at $2,318.60 with a 2.04% gain over the past seven days, maintaining a market cap of approximately $279.69 billion.
Key factors driving the current pullback include profit-taking after a sharp rally, liquidation-driven volatility fading, weak follow-through buying, and ongoing market consolidation. However, consistent institutional inflows into spot Bitcoin ETFs, nearly $2 billion in the past week, are providing underlying support. Geopolitical easing from ceasefire developments improved global risk sentiment, but momentum is now cooling.
The market is at a decision point. If Bitcoin holds above the $75,000–$78,000 range and reclaims $80,000 with strong volume, a continuation higher is possible. If Bitcoin fails to hold support and drops below approximately $73,000–$75,000, the current move risks turning into a bull trap, potentially leading to a deeper correction.
