Bitcoin Just Blew Through $100K, But This Could Be a Temporary Overextension

The cryptocurrency market has seen a stunning development as Ethereum massively blew through several resistance levels in a matter of hours, leading to a 31% surge and igniting the mood among traders.

The 200-day moving average, which is often used by traders to distinguish between bullish momentum and bearish continuation, is just below the $2,300 mark, which the rally has propelled ETH above. According to the price action, this may be the beginning of a major structural reversal rather than just a random spike.

With high volume backing the move, Ethereum has technically broke through the 50 EMA, 100 EMA and even 150 EMA in a single sweep. Although RSI is now just above 81, which would usually warrant caution as it’s entering overbought territory. However, explosive moves such as these RSI extremes can last longer than usual.

The huge candle not only breaks the previous downward trend but also opens the door for a move toward $2,600 and higher, with the psychological $3,000 zone being the potential next macro resistance level. When Ethereum displayed this kind of rally behavior in the past, it resulted in months of steady upward movement.

Overall, investor sentiment toward Ethereum is rapidly improving, especially with institutional interest in the post-ETF narratives and ETH/BTC parity receiving renewed attention. As Bitcoin moves closer to $100,000 and benefits from positive market sentiment, Ethereum is likely to follow suit.

In the short term, it wouldn’t be surprising to see a slight decline or consolidation around $2,300 to $2,400. Still, if Ethereum closes several daily candles above the 200 EMA, it would validate the breakout and change the overall trend to bullish. For traders hoping to ride this wave, cautious accumulation and scaling into strength might be the best course of action.

Shiba Inu is showing signs of renewed strength on the charts with a potential breakout toward the $0.00002 level from its most recent price action.

The asset has managed to clear some key price resistance levels as it broke through the $0.000014 zone and moved toward the 200-day exponential moving average (EMA), which is currently at $0.000016. Throughout its downward trajectory, this long-term EMA has acted as a persistent ceiling for SHIB, and it will be difficult to penetrate. However, with the recent increase in purchasing volume, the meme coin is showing signs of interest.

This latest price move is aligned with the increases in on-chain and market volume, which indicates that it’s being driven by market activity and not just a speculative bounce. The move to $0.00002 is more likely if SHIB can close a daily candle above the 200 EMA with sustained volume support.

Since momentum indicators like the RSI are still increasing and have yet to reach extremely overbought levels, there’s potential for further gains before a substantial decline is anticipated. While the psychological $0.000018 level has acted as both support and resistance in the past, traders should keep an eye on any possible resistance at this zone.

In other words, Shiba Inu is setting the stage for a significant run, but it’s encountering one of its most challenging technical hurdles. The price of $0.00002 is within reach and may arrive quickly if bulls can keep up the pressure and break the 200 EMA. The next few trading sessions will be crucial as it determines whether this breakout is confirmed or if another rejection is indicated.

Undeniably, bulls experienced a significant psychological victory with Bitcoin's recent breakout above $100,000, but do not celebrate just yet — this move might be a temporary overextension rather than the beginning of an unstoppable rally. On the price chart, Bitcoin taps out nearly at $104,000 after cleanly breaking through the $98,000 resistance.

For Bitcoin, this pattern is not unusual and often precedes consolidation or substantial declines. This acts as a warning sign for volume. For a move of this magnitude, the volume should be increasing rather than decreasing. The Relative Strength Index (RSI), which typically identifies local peaks at 75, is also deep in overbought territory.

Moreover, the current range of key support zones is $98,000 to $95,000. If Bitcoin fails to hold above this range, a swift decline back to the $92,000 or even $90,000 zone might occur. Bulls must defend the 50 EMA, which is around $93,000. Long term, the path to $100,000+ remains open, but sustaining a strong