Bitcoin and Ethereum are approaching breakout zones amid political and technical catalysts according to 10X Research.
Key points:
Bitcoin is re-testing $117,000 as traders monitor the breakout, but macro headwinds remain.
Ethereum is experiencing record activity in addresses and price increases - but the momentum seems to be driven by narrative.
Trump's pro-cryptocurrency signals (access to 401(k) accounts, push towards gold) provide psychological support, but with limited market impact so far.
Both Bitcoin and Ethereum are approaching key technical resistance levels with compressed volatility.
Bitcoin and Ethereum are nearing critical breakout levels, supported by a mix of technical setups, political shifts, and speculative momentum - but whether these catalysts are sufficient to ignite sustainable rallies remains in question.
According to a new report from 10x Research, the sharp recovery of Bitcoin towards the $117,000 mark has rekindled short-term optimism, but the underlying market context still shows compressed volatility and a seasonally weak backdrop. Caution: the rise may be more reactive than structural.
On the policy front, recent moves by former U.S. President Donald Trump - including suggestions to allow cryptocurrencies in 401(k) retirement accounts and renewed focus on gold - have sparked interest from macro-focused investors. However, the market reaction so far has been muted, suggesting that these narratives have yet to stimulate significant flows.
Ethereum, meanwhile, is showing signs of internal strength, with record activity in addresses and rising prices. However, the rise seems to be driven more by emotions than fundamentals, as Ethereum still lacks a critical macro or regulatory catalyst.
Technically, both Bitcoin and Ethereum are now testing long-term resistance levels. Ethereum is approaching a multi-year high pattern, while Bitcoin is pushing against levels that previously led to sharp reversals. As volatility compression continues, any breakout - or rejection - could be swift and significant.