Bitcoin & Ethereum Remain Vulnerable Below These Areas

Summary

In this video, the focus is on the current state of Bitcoin, Ethereum, Tether dominance, and the S&P 500. The speaker provides a detailed analysis of Bitcoin's recent price action, highlighting key levels and the potential for a pullback or further upside. Ethereum's price range and the possibility of a significant move up or down are discussed, with an emphasis on technical levels. Tether dominance is examined for its inverse correlation with Bitcoin, while the S&P 500's behavior is noted as crucial for predicting crypto market trends. The video concludes with a sponsorship promotion and an invitation to join a trading competition.

Takeaways

• 😀 The video discusses Bitcoin, Ethereum, and Tether dominance, along with updates on the S&P 500 and its relationship with the crypto market.
• 😀 The sponsor, Blowfin, offers a $300 deposit bonus and a $10,000 prize pool for a trading competition, available through the links in the description.
• 😀 Bitcoin's recent price movement has been sideways, with a focus on the range highs from December and January, particularly around levels like 106.6 and 110.
• 😀 Bitcoin's current market behavior, with its failure at 106.6, indicates a potential pullback, but this is uncertain without confirmation from further price action.
• 😀 The video highlights Bitcoin’s range between mid-70s and 92K, with the potential for a pullback toward 97-98K based on a previous aggressive move.
• 😀 The trader remains short from just above 111, with added positions on the retest of 106.6, expecting a potential pullback as the base case unless invalidated by further bullish movement.
• 😀 Ethereum's price action is being analyzed based on a range-bound market, with a specific focus on whether it will retest the upper wick around 2730-2740 and potentially fall toward the range lows at 2360.
• 😀 Tether Dominance is moving inversely to Bitcoin and has recently tested key support levels. The expectation is a potential push higher, despite current sideways movement.
• 😀 The S&P 500 is in an uptrend but approaching critical resistance levels, and its behavior will significantly impact the crypto market, which has been relatively weak in comparison.
• 😀 The video emphasizes that understanding the S&P 500's behavior is crucial for anticipating crypto market trends, particularly Bitcoin and Ethereum, in the coming days.

Q & A

What are the key levels in the Bitcoin market that the speaker is focusing on?

The key levels are 106.6K (resistance), 110K (previous all-time high), and 92K (mid-range). The speaker also mentions 100K as a psychological level and potential support.

What is the speaker's current position on Bitcoin and how are they managing it?

The speaker is currently holding a short position from above 111K and added to it on a retest at 104.8K. They plan to exit the short position if Bitcoin closes above 106.6K.

What does the speaker mean by 'failed breakout' in the Bitcoin market?

A 'failed breakout' refers to a situation where Bitcoin breaks above a resistance level but fails to maintain the upward movement, subsequently dropping back within a previous range. This is seen as a signal of a potential reversal.

What are the potential downside targets for Bitcoin if the market moves lower?

The potential downside targets are the psychological 100K level, an imbalance around 97-98K, and a wick around 97.7K, which the speaker considers as possible areas for price to retrace to.

What is the significance of Ethereum testing the 2730-2740 level?

The 2730-2740 level is significant because it could fill the upper wick of a previous candle. If Ethereum retests and rejects this level, it might lead to a pullback to the lower range, potentially reaching 2360.

How does the speaker view Tether Dominance and its relationship to Bitcoin?

The speaker views Tether Dominance as inversely related to Bitcoin. A rise in Tether Dominance indicates a decrease in Bitcoin's dominance and could suggest Bitcoin's price may face downward pressure.

What pattern is the speaker observing in the Tether Dominance chart?

The speaker observes a breakout in Tether Dominance after a significant test at 4.37, which suggests that the dominance could rise further, potentially putting pressure on Bitcoin in the near future.

How is the S&P 500 affecting the crypto market, according to the speaker?

The S&P 500 is influencing the crypto market by leading to sideways movement in crypto. If the S&P 500 fails at its recent highs, it could trigger a sell-off in the crypto market. Conversely, if the S&P 500 continues higher, it may support the crypto market.

What critical level in the S&P 500 does the speaker mention, and why is it important?

The critical level mentioned is 5790 in the S&P 500. If the market falls below this level, it could indicate a potential downturn, which would likely affect the crypto market as well.

What is the speaker's outlook for the crypto market in the short term?

The speaker is uncertain about the short-term movement of the crypto market, stating that conditions are sideways and unclear. They suggest that, while the market is quiet, there may be aggressive movements in the near future, particularly if Bitcoin stays below 106.6K.