Imminent profit-taking in Cryptocurrencies – What's the story

Cryptocurrencies are volatile investment assets, in case people forget.

After multiple weeks of sensational rallying, particularly in altcoins, Cryptocurrencies have started to find some profit-taking from their renewed highs.

Bitcoin originally led the way higher, marking its own ATH towards the last days of July (initially around $123,200). Hence, a $10,000 consolidation range followed, creating perfect conditions for altcoins to catch up—and Ethereum did not lose the opportunity, rising up to 33% in 12 days.

Multiple headwinds had caused Cryptos to surge higher: between the US opening investment and regulations for institutions and the masses to invest much more freely in digital assets, the 2025 USD fall prompting diversification (especially if you add the increasing global government deficits), and a huge appetite for risk assets amid the AI/Tech boom, there was a lot to digest for people not exposed to cryptos.

But this morning, some bad news knocked at the door of investors: Tariff-led inflation is starting to appear in the data.

This morning's PPI report has scared markets, but equities are holding decently well compared to cryptos.

For those who have not seen the preceding cycles, cryptocurrencies, being volatile and one of the most recent asset classes, tend to be sold off in advance, particularly as market levels and positioning reach some extreme form.

It doesn't mean that the Bull market is over yet, but there are some signs of hesitancy from Market participants.

Expect volatility to rise. and stay high.

Read More: USDCAD pushes to attempt a break above 1.38 amid USD bullish pressure

Let's take a look at the Daily picture for the Crypto market and then a few intra-day charts for some major cryptos with the ongoing selloff.

The picture is bloody – watch your risk. Cryptos have seen bigger moves than this in the past, up or down.
The move is still decently high in terms of % change, prompting some consolidation.

Bitcoin is seeing some heavy-selling, down around $7,000 from its most recent highs that got attained just yesterday evening.

8H RSI momentum is back to neutral but we will need to track if this is enough to stop the ongoing selling.

Prices are currently entering the $116,000 to $117,500 Pivot Zone and with the MA 50, it will be key to watch if some dip buyers enter.

If they don't the strength of the ongoing selling could point to a retest of the $110,000 Support.

Levels for BTC trading:

Support Levels:

• $116,000 to $117,000 Pivot
• $110,000 to $112,000 previous ATH support zone
• $100,000 Main support at psychological level

Resistance Levels:

• Current all-time high $124,596
• Major Resistance $122,000 to $124,500
• $126,500 to $128,000 Fib-extension potential resistance (1.382% from April to May up-move)

Looking at this chart really shows a strong picture, but profit-taking is not too surprising at these levels – particularly as we come at the target of a measured move of the first impulse post Israel-Iran War lows.

Do watch out for euphoric leveraged longs that have accumulated throughout the highs which may magnify the correction. For now, we are at 23.6% of the second move up or 13.6% of the total move.

Watch the $4,200 level that served as consolidation before the run-higher for potential dip buying, but the way overbought RSI would need to get closer to neutral.

Another key point to look at is a retest of the $3,900 – $4,000 pivot, a 61.8% of the whole move.

Levels for ETH trading:

Support Levels:

• $3,500 Support zone
• $4,000 Main pivot
• $4,200 consolidation zone

Resistance Levels:

• Current highs $4,793
• $4,700 to $4,900 All-time high resistance zone
• $4,870 2021 record
• Potential resistance at 1.618% Fibonacci extension of April to July up-move

Watch for the most recent double top around $200.

Levels for SOL trading:

Support Levels:

• $180 to $190 Major pivot
• Pivot turned support $165
• $140 to $150 Main support

Resistance Levels:

• Current highs $209,69
• $200 Psychological Level
• $295 January 2025 All-time highs

XRP hasn't been able to hold the bullish support of the triangle formation mentioned in our last market overview.

Watch momentum as it starts to get in bearish territory.

Holding around $3.00 or just around it is still a decent sign and could be good for pullback buying if there are signs of rebound from here.

However keep in mind that XRP is up 500% since November 2024 and 90% since April 2025, so further correction could be into play.

Levels for XRP trading:

Support Levels:

• Previous all-time Highs - $3.39 imminent resistance
• Current ATH resistance around $3.66
• $4.00 to $4.30 Potential Resistance
  

Resistance Levels:

• Current $3.00 Major Pivot Zone (Confluence with 4H MA 50 and 200)
• Resistance turned Support - 2.65
• May support 2.20 to $2.30

Safe Trades!