BTC and ETH Near Key Levels as Market Plays Hard to Read: 10x Research

The two major cryptocurrencies bitcoin (BTC) and ether (ETH), are inching toward decisive breakout levels, fueled by a blend of technical pressure, political developments, and speculative enthusiasm. While the recent rebound in both cryptocurrencies has captured the attention of traders, underlying market dynamics raise questions about the sustainability of this rally. 

Digital asset research firm 10x Research revealed that BTC revisited the $111,673 breakout level on August 7, briefly touching $111,643 before bouncing back sharply. The move aligned with its earlier analysis. However, this technical retest, often seen as a healthy sign in bullish continuations, comes after weeks of compressed volatility and directionless trading. 

Momentum Wavers Amid Mixed Market Sentiment 

According to the research firm, the rebound has seen bitcoin challenge the $117,000 region once more, a level that now acts as near-term resistance. But despite the strength of this move, momentum remains fragile. Market sentiment is caught between anticipation and skepticism, especially in the absence of a clear macroeconomic driver. 

One of the major catalysts that could shape near-term sentiment is President Donald Trump’s renewed interest in digital assets. He has recently advocated for broader crypto access through 401(k) plans. Recently, Trump signed an executive order. This means  Americans can invest their retirement savings in crypto, real estate, and private equity. 

However, the immediate market response has been tepid. Many investors may view the headlines as more political posturing than actionable policy. Meanwhile, BTC trades below $117,000, according to data from CoinGecko.

ETH Activity Surges, But Price Lacks Direction

Seasonality also complicates the move. Historically, August and September are among the weaker months for crypto performance, and current market action reflects that caution. Low trading volumes and subdued volatility suggest that large players may still be on the sidelines.

ETH is also at a crossroads. On-chain data shows a spike in address activity, reaching record highs, which is typically a bullish sign. Yet, price momentum is driven more by sentiment and speculative narratives than by any notable upgrades or economic shifts within the Ethereum ecosystem.

The lack of a strong fundamental trigger has left Ethereum flirting with key resistance levels without a clear catalyst to break through. If momentum fades, a rejection at these levels could send the asset back toward previous support zones.

10x Research noted that the assets are testing boundaries that could either validate the bullish case or confirm ongoing consolidation. A notable breakout could invite fresh capital, while a failure may lead to renewed downside pressure.

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