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While weekend news feeds remain quiet, an important scenario is unfolding on the charts at the start of August as Bitcoin is attempting to form a reversal, but Ethereum is technically one step ahead.
Right now, BTC is hovering near $63,382, carefully drawing the right shoulder of a classic inverse head-and-shoulders pattern. Behind it lies a heavy decline from May highs above $81,000 and a nervous search for a bottom near $57,000.
TechCharts analyst Aksel Kibar calls this setup the only real reason for short-term optimism among bulls at the beginning of August.
But while Bitcoin is still standing at the foot of the climb, wondering whether buyers have enough strength for a decisive push toward the key neckline at $67,200, Ethereum has already completed this journey.
In the ETH/BTC pair, a similar reversal bottom has already broken to the upside.
The leading altcoin has established itself in an uptrend and is confidently moving toward the technical target of 0.0312, proving that large capital currently prefers to park in ETH rather than in the market flagship.
This liquidity rotation is draining Bitcoin and depriving it of the volume needed for a quick start.
Against the U.S. dollar, Ethereum is now carefully retesting the $1,875 level from above. Should this support withstand the pressure, a direct path toward $2,163 will open for the coin.
$67,200 ultimatum: Will Bitcoin mirror Ethereum's breakout or validate the bears?
This relative strength in ETH is an excellent sign for the broader market, but the situation remains tense for Bitcoin holders. Either BTC follows the example of its younger sibling and delivers a rapid move above $67,200, confirming the classic reversal, or the pattern breaks down.
Based on the context provided by Kibar, without an assault on the neckline in the coming days, bears will regain control and send Bitcoin toward the solid support levels at $60,000 and $58,000. Considering all the factors, the price action over the next few days at the beginning of August will decide everything.
Dan Burgin
