Let’s examine the insights shared by our Technical Analyst at UseTheBitcoin as he walks us through his personal trading approach and observations on the crypto market.
Larry Fink’s Shift On Bitcoin
In a surprising turn of events, Larry Fink, the CEO and Chairman of BlackRock, has shifted his stance on Bitcoin.
Once a skeptic, Fink openly admitted that his opinion on Bitcoin from five years ago was wrong. Today, he believes in Bitcoin’s potential and asserts that it has a role in investment portfolios. This significant endorsement from the head of the world’s largest asset manager is a strong reassurance of the growing mainstream acceptance of cryptocurrency, instilling confidence in the market.
Adding to the bullish sentiment, former US President Donald Trump has also voiced his support for Bitcoin. This confluence of high-profile endorsements has boosted confidence in the cryptocurrency market, reflecting a broader trend of positive news surrounding Bitcoin.
Bitcoin’s Technical Performance
From a technical perspective, Bitcoin is performing exceptionally well. It has recently broken out of its downtrend pattern and surpassed key resistance levels at $60,000 and $63,000, and it is now attempting to break the $64,000 mark. Bitcoin has overcome multiple resistance levels in a single day, signaling upward solid momentum.
However, investors should exercise caution as Bitcoin is currently experiencing significant resistance. This situation presents a possibility that early buyers might start taking profits. If you are considering buying Bitcoin again, waiting for a potential pullback to the $62,000-$63,000 range might be prudent.
Ethereum And Other Major Cryptocurrencies
Like Bitcoin, Ethereum has also broken out of its downtrend pattern and is now challenging the $3,400 resistance level. Since Ethereum is at a resistance point, it may consolidate before making further moves. Therefore, a more strategic entry point could be around the $3,300 level, anticipating new higher lows in the coming days.
Solana is following a comparable trend, having broken its downtrend and currently testing resistance levels around $158 to $160. A recommended buying zone for Solana is around $154, aligning with a potential consolidation phase.
While still in a large consolidation box, BNB has also broken its downtrend pattern. However, it remains at resistance levels, making it less exciting for short-term trades at this moment.
Final Thoughts
Most cryptocurrencies are breaking their resistance levels, indicating a bullish trend. Nonetheless, avoid the fear of missing out (FOMO) and wait for the proper timing to enter the market. Strategic buying opportunities may present themselves after these coins consolidate at their new resistance levels, providing better entry points for investors.
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