Bitcoin and Ethereum Charts Signal Crypto Market Reversal
Technical analysis reveals a promising shift for major cryptocurrencies. Bitcoin and Ethereum are showing clear signs of a durable comeback after months of skepticism and false starts. Investors should take note as the market dynamics improve.
Bitcoin's Upward Trend Gains Strength
Bitcoin is currently trading around $96,000, marking a 15% increase from last November's low. The recent advance is not just about momentum. It is supported by a stronger technical structure.
Key moving averages have been reclaimed, trendlines are turning higher, and buyers consistently step in during pullbacks. This suggests a firmer foundation compared to past rallies.
Short-term volatility remains, but the overall picture looks positive. Bitcoin might consolidate near the $100,000 level, yet the momentum continues to build.
iShares Bitcoin Trust ETF Springs to Life
The iShares Bitcoin Trust exchange-traded fund had a flat performance over the past year. It traded 23% below its recent 52-week highs. However, things changed in the past week.
The ETF climbed 8% and is on track for its first three-week winning streak in six months. Technical action improved as it reclaimed its 21-day exponential moving average on January 2. This week, it climbed above the 50-day simple moving average.
Remarkably, the slope of the 200-day simple moving average never turned lower despite a 35% drop between early October and late November. Weakness began with a bearish evening star pattern on October 7, causing a 3% fall.
Several doji candles near $50 in December hinted at a bottom. On Wednesday, the Bitcoin fund broke above a bullish ascending triangle pivot at $54. This sets the stage for a potential move toward $65, a 20% gain from current prices. The bullish case holds above $52.
Ehereum ETF Shows Improving Backdrop
The Grayscale Ethereum Staking ETF suffered a sharp pullback in the fourth quarter of last year. It now sits roughly 32% below its most recent 52-week high. Performance has been inconsistent, failing to post consecutive weekly gains since last August.
Despite this, the technical backdrop is beginning to improve. Since completing a bullish morning star pattern on November 24, there has been little follow-through to the downside. This move also marked a successful retest of a bull flag breakout from last July.
The $40 level acted as a clear ceiling after a 15% advance on August 22, disrupting progress. A bearish engulfing candle on October 7 triggered the subsequent pullback.
Recently, the fund reclaimed both its 21-day exponential and 50-day simple moving averages. On Wednesday, it surged 6% on above-average volume, breaking out of a symmetrical triangle. If the breakout holds, the setup points to a potential move toward $34 in the second quarter. The broader bullish case remains intact above $25.
Solana ETF Holds Potential Double Bottom
The Solana ETF is down 29% over the past three months but started 2026 stronger with a 15% gain so far. Volatility remains high, and it trades roughly 46% below its recent 52-week high.
The fund is holding a potential double bottom near the $12 level, dating back to last April. It was the first major crypto fund to weaken, beginning its descent in September ahead of Bitcoin and Ethereum ETFs.
An early breakdown featured a bearish island reversal completed on September 22 for an 8.3% drop. Over the last month, it has been pushing off the $12 area, supporting the double bottom theory.
Focus has shifted to the upside. A decisive break above the $15 bullish inverse head and shoulders pivot could improve the technical outlook. This might open the door to a move toward $18 later in the second quarter, roughly 23% above current levels. The broader bullish case stays intact above $13.75.
Conclusion: Real Turnarounds in Motion
These technical developments indicate real turnarounds before they become obvious to everyone. Bitcoin and Ethereum are leading the charge with improved charts and stronger momentum. Investors should watch these signals closely as the crypto market shows signs of a durable recovery.
