Kraken: Bitcoin (BTC) maintains its bull momentum

In a recent report, the analysts at Kraken stated that Bitcoin (BTC) continues to demonstrate its resilience, maintaining its bull momentum above the psychological level of $100,000.

In fact, not only has the price of BTC remained almost constantly above that threshold for a week, but in recent days it has also managed to climb back above $105,000. 

The report by Kraken on Bitcoin (BTC)

The report by Kraken analyzes the prices of the main cryptocurrencies, outlining some possible future scenarios.

In addition to the price trend of Bitcoin (BTC), it also specifically analyzes that of Ethereum (ETH) and Solana (SOL).

It should be remembered that Ethereum is still clearly the second largest cryptocurrency in the world by market capitalization, and that to date Solana is its only true major competitor. 

Although among the top 5 cryptocurrencies there is also XRP, the crypto markets continue to be dominated mainly by BTC, ETH, and SOL, given that the first alone capitalizes more than all the other cryptos put together, while the other two dominate the DeFi sector.

Bitcoin (BTC): the analyses of Kraken

Regarding BTC, the analysts at Kraken point out that it is still trading above all the main exponential moving averages (EMA). In particular, the 100-day EMA, located just below $90,000, is providing significant support, as it aligns with a fundamental trend line. 

The fact is that such levels have historically attracted buying interest, and therefore they can act as magnets for the price in case of a retracement. This indeed strengthens the broader bull structure of Bitcoin’s price trend.

Furthermore, the analysts at Kraken also point out that the relative strength index (RSI) oscillates around the 65 mark, which is not particularly high, suggesting that the price of BTC still has room to grow without having to enter overbought territory. 

However, the report also warns operators that a potential strong increase in the RSI index levels could actually signal a possible short-term peak, followed by a consolidation phase.

As for the resistances, the most challenging one seems to be the one placed around $110,000. In fact, this price threshold could act as a trigger for short-term profit-taking, as it would constitute a new all-time high as of today. 

In the event that such resistance were to be decisively broken, it would open the doors for further bullish explorations, with the next key target set at $120,000.

In the report by Kraken, the analysts write: 

“BTC remains firmly in a bull structure, but caution is essential as it approaches critical resistance levels. Short-term traders might consider taking profits, while long-term holders can continue to ride the trend, keeping an eye on the 100-day EMA as a key support level to monitor”.

Ethereum (ETH)

The discussion regarding the trend of the ETH price, on the other hand, is different. 

In fact, the analysts at Kraken emphasize how Ethereum is continuing to trade within a consolidative structure, struggling to reclaim the key resistance at $4,088 that has limited its growth since March 2024. 

Therefore, for ETH the bull momentum remains subdued, despite the recent recovery. 

The crucial support seems to be placed at the 3,117$ mark, which is on the 200-day exponential moving average, as it has been a key inflection point since October 2024. The price of ETH has actually fallen below that threshold in recent months, but only briefly, and has never recorded lower daily closes. 

Furthermore, the 200-day EMA also aligns with the 0.618 Fibonacci retracement level, set at $3,020, and if the price of Ethereum were to lose these levels, the next significant support would be set at $2,813. 

Moreover, its RSI index oscillates around 50, which is in perfect neutral territory, thus making the next move of ETH highly dependent on its response to resistance and support levels. 

In the report by Kraken, the analysts write: 

“A decisive break above the descending blue trendline would signal renewed bull strength, potentially paving the way for a move towards the $3,800-$4,100 range. Conversely, failing to hold above the 200-day EMA could lead to further bear declines, with $3,000 and $2,811 emerging as critical levels to defend”.

Solana (SOL)

The trend of the price of SOL seems more similar to that of BTC, rather than that of ETH. 

In fact, Solana is proceeding with its strong bull momentum, trading above all the major EMAs, so much so that at the beginning of this week it reached a new all-time high at $296.

This strong rally has caused the relative strength index (RSI) to approach the overbought territory (75 points), reflecting the strong bull momentum but also signaling potential caution for short-term traders.

In the Kraken report, the analysts write: 

“A decisive daily close above $260 would confirm a renewed bull momentum and likely pave the way for further bull explorations, with $280 and $300 emerging as the next key targets. However, failing to maintain above $230 could see SOL visiting lower support levels, with $204 representing the next significant area to defend”.