Kraken Traders Monitor Bitcoin’s Consolidation Amid Potential Downside Risks

Bitcoin's price action is currently showing signs of consolidation below the critical $118,000 resistance level, with traders closely watching for potential downside corrections. The cryptocurrency faces immediate resistance near $118,400, which aligns with the 61.8% Fibonacci retracement of its recent downward move from $119,630 to $116,260. A bearish trend line forming on the hourly chart suggests continued pressure, prompting market participants to weigh the likelihood of a near-term pullback. As of July 22, 2025, the market remains cautious, with Kraken users particularly attentive to these developments given the exchange's significant role in Bitcoin trading. This phase of consolidation could set the stage for either a breakout or further correction, depending on broader market sentiment and key technical levels being tested.

Bitcoin Price Consolidates as Traders Eye Potential Downside Correction

Bitcoin's price action shows signs of consolidation below the critical $118,000 resistance level, with market participants weighing the possibility of a near-term correction. The flagship cryptocurrency faces immediate resistance NEAR $118,400, a level coinciding with the 61.8% Fibonacci retracement of the recent downward move from $119,630 to $116,260.

A bearish trend line forming on the hourly chart suggests continued selling pressure, with Kraken exchange data showing BTC struggling to maintain momentum above the 100-hour moving average. The $116,200 support zone emerges as a key level to watch—a breach could confirm the start of a deeper pullback.

Market structure remains fluid as bulls attempt to regain control. A decisive break above the $120,000 resistance WOULD invalidate the current bearish technical formation and potentially trigger fresh upside momentum.

Ethereum Price Momentum Explodes—Is the Path to $4K Wide Open?

Ethereum's price surge above $3,750 signals renewed bullish momentum, with ETH outperforming Bitcoin and eyeing the $3,950 resistance level. A key trend line supports the rally at $3,720, while consolidation above the 100-hourly SMA suggests sustained upward potential.

The breakout past $3,800 resistance confirms market strength, with Kraken data showing a 23.6% Fib retracement holding firm from recent lows. Traders now watch for a decisive close above $3,920 to validate the path toward $4,000—a psychological barrier that could trigger fresh institutional interest.