In the first Trading Spaces of 2026, Kraken VP of Growth Matt Howells-Barby sat down with Pro trader Dentoshi to assess whether early January price action is just another false start – or the beginning of a more tradable environment.
With Bitcoin attempting to reclaim key levels, ether already showing relative strength and altcoins breaking long-standing downtrends, the conversation focused less on macro and more on what the charts are actually doing.
As always, this discussion is for educational purposes only and should not be considered financial advice.
Bitcoin: A new yearly open, but conviction still needed
The session opened with bitcoin, where Dentoshi emphasized the importance of the new yearly open as a fresh benchmark for traders. After weeks of extremely low volatility and repeated rejections near the same levels, BTC has spent much of the past month locked in a narrow range.
Dentoshi noted that prolonged compression often precedes expansion – but direction matters more than speed.
“We’ve been sitting here for so long. When the move comes, whether it’s up or down, it’s one you should actually believe.”
While BTC has yet to convincingly reclaim its key moving averages, Dentoshi highlighted that early signs are beginning to appear on lower timeframes. A sustained reclaim of the 2025 yearly open, combined with bullish EMA structure, could open the door to a push toward the next major resistance zone. Conversely, failure at current levels would likely lead to a sweep of recent lows and potentially better entries.
The takeaway: volatility is likely coming – but bitcoin still needs confirmation before traders can assume follow-through.
Ether leads the majors as momentum builds
Where bitcoin remains undecided, ether is already doing what BTC has not.
Dentoshi pointed out that ETH is breaking back above key EMAs and might be beginning to flip them into support, a structural shift traders have been waiting for since late 2025. While nearby resistance remains a risk, ether’s relative strength stands out – particularly given how many altcoins historically depend on ETH’s health to sustain upside momentum.
“ETH is already performing what we want to see on BTC. That gives it more strength – and that’s a good sign for alts as well.”
Matt added that broader sentiment around ether in 2026 appears noticeably more constructive than for other majors. While long-term projections should always be treated cautiously, belief matters – and markets tend to reward rallies people are willing to buy.
For now, Dentoshi stressed a level-by-level approach, watching whether ETH can reclaim its nearby resistance cleanly rather than assuming an immediate move higher.
Altcoins: From total apathy to early structure shifts
One of the most notable shifts in this session was the sheer number of altcoin charts beginning to look similar.
After nearly three months of persistent downside following the October 10 selloff, Dentoshi highlighted that many alts are now attempting to reclaim long-held downtrends.
This includes both memes and non-memes, an important distinction.
“This strength isn’t meme-isolated. A lot of coins are doing the same thing structurally.”Examples discussed included PEPE, which has been one of the strongest movers off the lows, as well as ENA, PENGU and other assets retracing from deeply oversold conditions into major EMA clusters.
The “gap fill” setup Dentoshi is watching closely
A key educational moment in the stream came when Dentoshi explained a concept she frequently uses: the EMA gap fill.
When an asset reclaims a longer-term downtrend, price often travels from one EMA to the next, “filling” the gap between them. These setups can occur on multiple timeframes and, when aligned with support/resistance and broader market strength, offer high-probability trades.
“When an asset reclaims a trend that’s been pushing it down, it often trades to the next EMA and fills the gap.”
Dentoshi noted that many altcoins are now entering exactly this phase, with price reclaiming daily trend EMAs and potentially targeting higher moving averages if conditions remain supportive.
The caveat: these setups only work if the broader market stays constructive – and sharp rejections would invalidate the thesis quickly.
Zcash: An outlier chart that still raises questions
Zcash (ZEC) remains one of the more confusing charts in the market.
While it showed unusual strength post-October – even pushing to yearly highs when most assets were collapsing – recent price action has diverged from the rest of the altcoin complex. As ETH and others attempt to reclaim trends, ZEC has weakened at critical levels.
“You really don’t want to see this much weakness when the rest of the market is moving.”
Dentoshi explained that ZEC is now at a decisive inflection point. Holding current support could allow the structure to stabilize, but failure would likely confirm a broader trend reversal – and potentially mark the end of its relative outperformance.
Both speakers cautioned against emotional attachment to prior winners, emphasizing the risk of “round-tripping” profits by forcing trades on charts that no longer behave cleanly.
Weak charts improving is a healthy sign
Interestingly, some of the weakest charts from late 2025 are now beginning to reclaim structure as well. Dentoshi pointed to examples like XRP-adjacent plays and newly listed assets such as MONAD, where logical breakouts, retests and diagonal structures are finally starting to hold.
“A tradable market is one where logical levels actually matter again.”
This shift – from random level-blasting to technically respectful price action – could signal a gradual transition back to an environment where traders can operate with more confidence.
DOGE confirms the broader theme
To round out the altcoin discussion, Matt pulled up Dogecoin – and the result reinforced the broader takeaway.
DOGE is also breaking out of a long-standing downtrend, reclaiming structure that has capped price for months. While still early, the consistency across charts suggests this is not isolated speculation, but a coordinated shift in market behavior.
“They’re all doing the same thing. After a long downtrend, these gap-fill environments show up again and again, and they are usually profitable strategies.”
What to watch next
As the session wrapped up, both speakers agreed that the next few days will be critical. With BTC and ETH pushing into key resistance zones and global markets reopening, sustainability will matter more than the initial move.
Dentoshi’s checklist for traders:
Identify assets that retraced to logical, significant lows
Watch for EMA reclaims across multiple timeframes after a move off those lows
Be aware of token unlocks and catalysts
Let BTC and ETH confirm strength before assuming continuation
After months of chop, the market is finally offering something new: opportunity – with conditions.
Watch the replay & follow along
Catch the full replay on YouTube:
You can follow @Dentoshi on X for more chart insights, and keep an eye on @KrakenFX and @KrakenPro for upcoming Trading Spaces and market commentary. The full session replay is available on X. We’ll be back soon with the next episode of Trading Spaces.
Trade with Dentoshi on Kraken Pro
The post appeared first on Kraken Blog.
_webp.webp&w=3840&q=75)
