Bitcoin faces resistance as US stocks lose momentum, warns trader Josh on Crypto World. He highlights the risk of a near-term correction in both Bitcoin and the broader crypto market.
Key Resistance Levels for Bitcoin and Altcoins
Trader Josh mentions that Bitcoin faces resistance between the range of $65,500 and $66,000. This resistance barrier disrupted Bitcoin’s recent uptick just as the bullish momentum in the US stock markets halted. Although the price on the weekly chart demonstrates that Bitcoin is forming a bullish divergence, a positive sign in the long run, Josh emphasizes that the absence of support from equity markets may lead Bitcoin towards a drop in price in the short run.
Josh observes that Solana is still above the support level of $75 according to the three-day chart. The altcoins show some resilience. Ethereum is showing a W-formation (a double bottom) along with a price target of $2,200. The trader, however, reduced his position after ETH hit support at $1,930.
US Stock Market Weakness and Its Impact on Crypto
One of the primary factors that has contributed to Josh’s sense of caution is the recent weakness in the US equity markets. As pointed out by Josh on Crypto World, declines in stock prices often lead to spillover effects into the crypto space, which exacerbates the decline. Therefore, it is possible for both Bitcoin and Ethereum to have strong technical setups; however, if there is no underlying demand in terms of overall risk appetite in the financial markets, then the price will have trouble moving higher.
Furthermore, Josh wants people to understand that they need to keep an eye on what is going on because the combination of Bitcoin hitting its resistance and the poor performance of the equity markets could create too much volatility. He recommends monitoring these metrics in addition to technical analysis of individual cryptocurrencies in order to get a good handle on what the potential for movement will be.
Trading Strategies and Opportunities Highlighted
Josh offers insight into his concept of partial profit taking. The timing for this strategy is based primarily on hitting important support levels. As an illustration, he reduced his Ethereum position when that currency went down to $1,930. If you wish to continue to be active in the marketplace, he recommends the LBank trading platform. Josh is a user of their platform and states that they offer an incentive to new users of up to 4,000 USDT.
From what Josh conveys through his analysis, there is likely to be long-term upside potential for Bitcoin and certain other altcoins. However, traders need to adopt defensive measures in case they need to go through some temporary declines during the short term based on activity in the crypto and traditional financial markets.
Source — Crypto World: https://www.youtube.com/watch?v=qsGGXJ0RX38