Crypto markets have pulled back on Thursday, after an upside inflation print renewed fears of a persistent pick-up in prices.
What Happened: In a live session on Thursday, prominent analyst Kevin highlighted that Ethereum (CRYPTO: ETH) and the Total 2 altcoin market (all altcoins excluding Bitcoin (CRYPTO: BTC)) have approached a 4-year historical resistance zone, but were rejected following the PPI release.
He noted that such a reaction is normal after strong upward moves, particularly for Ethereum.
These resistance zones are critical markers for the current bull cycle, representing the line between normal market behavior and full price discovery.
Breaking these levels, especially for Total market capitalization, could trigger one of the largest altcoin rallies in the cycle.
Bitcoin also attempted to break out but lacked momentum despite favorable money flow and technical indicators.
Both BTC and ETH are now facing their final major resistance levels of the cycle.
Also Read: Bitcoin, Ethereum, XRP, Dogecoin Slip As Hotter-Than-Expected PPI Data Weighs On Markets
What's Next: Kevin emphasized that Bitcoin must hold $116,300 to maintain short-term and long-term structure.
Bitcoin dominance, currently near 58%, referred to as the "golden pocket", is another critical line of support; a break could indicate the Bitcoin cycle peak is in.
He advised traders against buying at these resistance levels, saying: "Treat resistance as resistance until it is not resistance anymore."
A future opportunity to break these levels is likely unless unexpected macroeconomic events occur.
Looking ahead, Kevin sees Jerome Powell's upcoming speech at the Jackson Hole Economic Policy Symposium (Aug. 21–23) as a potential market-moving event.
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