Daily News || Bitcoin Holds $116k as Altcoins Consolidate; ETH Eyes $6k Run
Exchange reserves dwindle while stablecoin dominance breakdown signals more upside ahead
🪙 Crypto Market
Bitcoin is stabilizing around $116,000 while many altcoins cool off near their recent highs. A familiar weekend dynamic has re-emerged: Sunday market maker activity often injects volatility before the new trading week begins.
One theme gaining traction is the steady decline in exchange reserves for both BTC and ETH. With fewer coins available for sale, dips are harder to sustain—especially if ETF inflows remain strong next week.
Key Technical Levels
Above $115k: Bulls retain control, with scope to test $117.7k or higher.
Below $115k: A slip could open a retest of $113.6k before buyers return.
BTC continues to track a Wyckoff-style reaccumulation pattern, which typically features short-lived pullbacks before fresh highs. Even if a minor correction plays out, the broader structure points to another attack on all-time highs.
Positioning & Signals
Momentum gauges continue to ease lower, historically a bullish sign in uptrends.
Retail positioning has flipped net short, a contrarian setup that often fuels squeezes higher.
Stablecoin dominance remains on a downward trajectory; the recent Fibonacci retracement suggests more room to fall, meaning capital rotation into crypto could accelerate.
🌐 Ethereum Focus
Ethereum is holding above support on its megaphone breakout pattern, reinforcing the case for a move toward $6,000. The only caution: liquidation clusters remain near $4,500, leaving room for a shakeout before new highs.
So long as ETH doesn’t breach that lower zone, the structure remains bullish and aligned with broader crypto market strength.
📌 Key Takeaways
BTC steady at $116k; holding $115k keeps $117.7k in play, with potential extension higher.
Exchange reserves for BTC & ETH keep falling, tightening supply.
Retail traders shorting adds contrarian fuel for bulls.
ETH structure intact, with $6k target alive despite risk of a shakeout toward $4.5k.
Stablecoin dominance breakdown suggests this rally is still in its early stages.
🎯 Strategy Snapshot
Short-term bias: Long from $115k, targeting $140k.
Medium-term: Weekly close above $120k strengthens ATH case.
Long-term: Cycle path still projects toward $230k, with $72k as cycle floor.
This newsletter is published daily on Substack. Early issues are free, later editions will be subscriber-only.