Trader Gareth Soloway says the current move higher in crypto still has room to extend, though he is not treating it as the start of a fresh long-term bull market. In his view, the market is in a short-term relief rally.
He says his approach is chart-driven. If a chart turns bullish, he trades from the long side; if it turns bearish, he looks short. Right now, he sees constructive setups in Bitcoin, Ethereum, and XRP, even if the strength is not identical across all three.
Bitcoin forms a bullish consolidation after rebounding
Bitcoin bounced sharply after trading near $60,000, and Soloway says that recovery produced a classic bullish consolidation. After a hard sell-off, the market printed a strong reversal candle and then moved sideways in a tight range, a pattern often read as quiet accumulation before another push higher.
Based on that structure, he says Bitcoin is more likely to reach $80,000 to $85,000 before dropping to $50,000 in the near term. He ties that view to strong consolidation after the decline, extremely negative sentiment that could trigger short squeezes, and notable accumulation in the $60,000 to $70,000 area.
He also draws a clear line between a rally and a confirmed cycle shift. Even if Bitcoin reaches that target zone, he says it would not automatically mean a new long-term bull market is underway.
Ethereum reclaims $2,000 and flashes a bull flag
Ethereum has climbed back above $2,000 and formed what Soloway describes as a bull flag. If that breakout holds, he expects ETH could move quickly toward $2,600 to $2,800.
That implies near-term upside of roughly 27% to 35%. Still, he says that same zone could bring heavy resistance. If Ethereum reaches $2,600 to $2,800, sellers may become much more active. On the downside, he keeps $1,500 in focus as a major long-term support area if the wider market weakens again.
XRP remains weaker unless it clears $2
XRP, trading near $1.40, looks more fragile on his chart. Soloway says the token recently broke below a major support trendline, leaving the setup somewhat weaker, though not eliminating the chance of a rebound.
He places resistance between $1.60 and $1.90, with stronger resistance near $2.00. A move from current levels into the $1.60 to $1.90 band would equal about 11% to 33% upside, but he says the larger breakout case only starts if XRP can break above $2 and hold it.
Negative sentiment and Washington discussions are part of the setup
On what may be driving the rally, Soloway points to expectations around crypto-related discussions in Washington and the possibility of favorable regulatory developments. Sentiment also matters here.
When market mood becomes extremely negative, sharp upside moves can follow fast, especially in crypto where short squeezes can lift prices in a short period. His read is straightforward: charts look bullish for now, but he is treating this as a tradable short-term rally rather than a confirmed long-term trend change.