Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) are testing crucial support levels following sharp corrections from recent highs, with traders closely monitoring whether these zones hold or break.
What Happened: Crypto chart analyst Ali Martinez noted that capital inflows have dropped 24% in three weeks, from $86 billion to $66 billion, affecting major assets like Bitcoin and Ethereum.
Bitcoin has retraced from its all-time high of $124,590 to around $113,500, with Martinez pointing out the following scenarios:
- Holding $112,000–$112,800 could spark a rebound to $115,000–$118,000 and potentially retest $124,600.
- Losing $112,000 risks a deeper slide toward $108,250, with on-chain data showing a liquidity gap that could accelerate the drop.
Ethereum has dropped from $4,800 to test the key support zone of $3,700–$4,000. Holding this range could set up moves toward $4,340 in the short term and $6,300 in the medium term. A break above $4,400 may confirm the correction is over.
Both BTC and ETH sit at make-or-break levels. A bounce from here could revive bullish momentum, but a breakdown risks a sharp retracement. Traders are urged to remain patient and manage risk until clearer signals emerge.
Also Read: Bitcoin, Ethereum, XRP See Most Profit-Taking Since December: A Buy-The-Dip Opportunity?
What's Next: Bitcoin's next big support levels based on MVRV Pricing Bands stand at $112,800, $91,400, and $70,000.
In an Aug. 18 post on X, Martinez had cited on-chain data showing a liquidity gap between $112,000 and $108,000.
He predicts losing that support could quickly trigger a sharp $4,000 drop to $108,000.
The Accumulation Trend Score dropped to 0.20, pointing to holders redistributing their Bitcoin rather than accumulating at these levels.
Looking ahead, Martinez marks $4,000 and $3,700 as key support levels for Ethereum after more than 400,000 ETH was purchased by whales in the recent dip.
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