Zinger Key Points
- DonAlt highlighted the key areas for Bitcoin and the concerning performance of Ethereum against BTC.
- The trader suggests adopting a cautious approach towards Bitcoin, Ethereum, and Solana while watching macro factors also.
Crypto analyst DonAlt shared his insights on Bitcoin BTC/USD, Ethereum ETH/USD, and Solana SOL/USD in his latest market analysis, highlighting key levels and potential scenarios for near-term price action.
What Happened: In the latest podcast episode, DonAlt pointed out that Bitcoin’s monthly chart is at a critical juncture, with the $61,000 level being a key area to watch. He suggested that a close above this level could signal bullish momentum, while a close below could indicate a bearish trend like 2021’s false breakout.
On the weekly timeframe, Don pointed out lower highs and lower lows, indicating a downtrend. He emphasized that the $60,000 level is now the “line in the sand” for Bitcoin’s direction. In early July, DonAlt had said that $60,000 is a critical "line in the sand" and reclaiming that level could signal renewed bullish momentum.
Regarding Ethereum, Don expressed concern over its performance against Bitcoin, noting that it has broken through several support levels. He suggested that ETH/BTC might find support around the 0.028-0.035 range, but cautioned against rushing to buy, preferring to wait for clear signs of strength.
Don also touched on Solana, recounting a recent trade where he shorted at $183. While the trade was profitable, he admitted to closing too early, missing out on further downside.
Why It Matters: Overall, Don’s analysis suggests a cautious approach in the current market, with a focus on key support and resistance levels for potential trading opportunities. He emphasized the importance of considering macro factors, noting that Bitcoin is currently trading in lockstep with the S&P 500.
The latest Bitfinex Alpha report highlighted that Bitcoin and SPX have seen a positive correlation since mid-July and if the stock market continues to the downside it could push Bitcoin towards facing downward pressure.
The last weekend witnessed a bloodbath in crypto markets amidst pressure from Japan's stance on its interest rates and geopolitical tensions in the Middle East. This implies that the cryptocurrencies have a direct relationship.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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