Several Catalysts Are Driving Bitcoin and Ethereum Toward Breakout Levels — But Is It Enough?

Why this report matters

Bitcoin’s swift rebound to test the $117,000 level has reignited trader interest, but the bigger question is whether this rally is built on lasting catalysts or fleeting headlines. Beneath the surface, the market is wrestling with compressed volatility, seasonally weak months, and a lack of fresh macro drivers.

Trump’s latest moves — from expanding 401(k) access to crypto, to pushing gold into the spotlight — could shift sentiment, but so far the response has been muted. Ethereum, meanwhile, is flashing record address activity and surging prices, yet much of the move appears narrative-driven rather than grounded in fundamentals. Both assets are now pressing against key technical boundaries where momentum could either accelerate or stall sharply.

Ethereum is trading near the top of a multi-year pattern

Main argument

In our July 28 report, we noted: “We would prefer to see Bitcoin retest its $111,673 breakout level to provide a more favorable risk/reward entry point.” On August 7, Bitcoin did precisely that, dipping to a low of $111,643.

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