$24,500 still controls the hourly time frame as gains are quickly eroding for both Bitcoin and Ethereum.

Bitcoin (BTC) returned to a resistance range on August 17 amid lingering fears that a pullback is imminent.

BTC/USD hourly chart (Bitstamp). Source: Trading View
Bitcoin Bulls Failed
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD reached $24,448 on Bitstamp, up 3.25% from the previous day’s low, before dropping $600 in less than an hour.

Momentum picked up speed throughout the day, but the bulls ran into known resistance at levels that have mostly held them back since mid-June. Last week’s trips to $25,000 and above remained brief breaks above the two-month price cap.

Analyzing the scenario, veteran trader Peter Brandt looked at a rising wedge formation for Bitcoin at $20,700 as a starting point.

On-chain monitoring resource Material Indicators was less confident about the persistence of the current rally.

Uploading a snapshot of the Binance order book on August 16, he captured the resistance that is now preventing Bitcoin from further gains, adding that the setup “looks like previous local highs.”

“The liquidity of the offer is quite low, but it tends to change after the loss of support,” additional comments say.

BTC/USD order book chart (Binance). Source: Essential Indicators/Twitter.
Crypto trader Il Capo, meanwhile, doubled down on his prediction that BTC/USD would hit a high of $25,500 before dropping significantly.

Fellow Crypto Chase trader pointed to BTC lagging behind equities, especially compared to the S&P 500 since July.

“$ES pretty much lived up to my prediction,” he wrote:

“$BTC, on the other hand, is really struggling with the rise of the S&P500 (ES). Even a bear like me expected much more from BTC. I think that goes to show how weak the cryptocurrency is and that the big money certainly prefers the S&P500 over the crypto ATM.”

BTC/USD vs S&P 500 Mini Futures, 1-day candlestick chart. Source: Trading View
Ether evades $2,000
Among altcoins, Ether (ETH) bounced back briefly between $50 and $2,000 before falling in step with BTC.

Related: Bitcoin Traders Expect New Yearly Lows After $25k BTC Rejection – Data Divergent

The largest altcoin by market capitalization eclipsed Dogecoin (DOGE) the day before, DOGE/USD gained over 11% the day before the recovery.

Hourly candlestick chart ETH/USD (Binance). Source: Trading View
Trader Wolf, however, has introduced a bullish flag for the Ether Moving Average Convergence/Divergence (MACD) indicator on the weekly timeframes.

“There is so much disbelief in this rollover that I could have taken my target from 1.5 miles to 2 miles,” he added in a follow-up tweet the same day.

The views and opinions expressed here are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and trading move involves risk, so you should do your own research when making a decision.

Source: CoinTelegraph