Bitcoin is currently positioned between two significant liquidity blocks, establishing a narrow range that is now dictating the broader market’s next significant movement. Concurrently, Ethereum's ratio against Bitcoin is showing signs of breaking its established downtrend, providing a secondary indicator that suggests an upcoming increase in market rotation and volatility.
ETHBTC Breaks Its Downtrend, Chart Shows First Clean Retest and Lift
Ethereum's performance relative to Bitcoin is exhibiting its most robust bullish structure in several months. This follows a breakout from the descending channel that has characterized the market's movement throughout the autumn season. A chart shared by BitBull illustrates how the price successfully moved above the upper trendline for the first time, subsequently paused for a clear retest of this level, and then began to trend upward again. This specific sequence of price action is often a strong signal of a shift in momentum, indicating that sellers are losing their grip on the market range.
This breakout occurred after weeks of the market experiencing lower highs within the channel. Every attempt to recover the price stalled beneath the same diagonal resistance line until this week's closing price decisively pushed through it. This action set the stage for the subsequent retest, during which ETHBTC briefly dipped back toward the trendline but successfully held the level, preventing a slide beneath it. The price candles formed in this zone remained tight, demonstrating that buyers were actively absorbing any selling pressure.
Currently, the ETHBTC ratio is lifting off from the retest area with a more pronounced upward movement than previous bounces. The candles forming above the trendline clearly indicate a transition from a defensive stance to an offensive one, as the pair attempts to establish a higher price structure. BitBull observes that this specific pattern—a breakout followed by a retest and then continuation—often signifies the initial phase of a broader uptrend, particularly when prevailing market conditions are favorable for capital rotation into Ethereum.
Bitcoin Liquidity Map Shows Heavy Cluster at 93K–94K While Price Stays Range-Bound
In parallel, Bitcoin's most recent liquidity heatmap reveals a substantial concentration of pending orders and leveraged positions situated between $93,000 and $94,000. This data, shared by Daan Crypto Trades and visualized on the CoinGlass map, shows dense bands of liquidity within this specific price range. This concentration suggests a significant number of leveraged positions and pending orders are strategically placed just above Bitcoin's current trading range. Consequently, this area has emerged as the nearest significant zone where a rapid price movement could potentially trigger substantial liquidations.
Below the current market price, the heatmap identifies $87,000 as the next key liquidity band. However, the liquidity at this lower level appears to be less concentrated. While there is still evident interest around the $87,000 mark, it does not exhibit the same intensity or density of clustered orders as the overhead block. Should the price move downwards, the $87,000 region remains a relevant reference point, but it does not carry the same significant weight of clustered orders as the higher liquidity zone.
In the interim, Bitcoin continues to trade within a sideways pattern, with price candles oscillating back and forth across consistent intraday levels. This trading structure reflects a market that is actively seeking direction, while simultaneously, leverage is building up around clearly defined price zones. As a result, traders are closely monitoring the liquidity heatmap for confirmation of a decisive breakout from the current range. A clear move into either of the identified liquidity clusters is anticipated to unleash a new wave of market volatility.