All eyes are on Bitcoin for a possible breakout as the US stock market sets new records. The cryptocurrency is up against some key resistance and traders are keen to see if it will make a bullish move.
Stock Market Strength Fuels Crypto Optimism
There is a strong case to be made that the positive sentiment in traditional markets will carry over to crypto, as the host of Crypto World pointed out in his latest episode. The NASDAQ 100 has reached fresh all-time highs and there is no shortage of bullish momentum in equities. In such an environment, risk assets like Bitcoin tend to follow where stocks lead, which only serves to give traders the confidence they need to look for upside.
Key Levels for Bitcoin Approaching Potential Breakout
At present, Bitcoin is trading in the $82,000 to $88,000 range. There is significant resistance in the $86,000-$88,000 area, though support appears firm at the $82,000 mark according to a Crypto World trader.
That same trader is building up long positions with an eye on breaking through the resistance and reaching the $90,000 territory. The liquidation heat map for Bitcoin suggests upside liquidity in the $87,300 to $87,500 range, so those are the levels of interest for now.
Then there is the matter of the weekly chart. As discussed in the episode, there is a bullish divergence that has been in place since June; it is similar to what set the stage for the 2022 bull market. Such a technical setup is enough to have some traders take positions in anticipation of a solid move higher should the resistance give way over the next few weeks.
Impact on Ethereum, Solana, XRP, and Chainlink
Other top cryptocurrencies are having their outlooks shaped by the possibility of a Bitcoin breakout. The host of Crypto World points to Ethereum as an example, with its price structure in step with Bitcoin’s and resistance coming up at roughly $2,800. Solana is putting up a fight in the $119 to $124 range, though a firm move from Bitcoin may be all it takes for SOL to push higher.
XRP should follow suit with Bitcoin’s price action; clear the current resistance and a breakout is on the cards. Then there is Chainlink, which has to contend with the $14.10-$14.30 mark but is primed for a bullish run should the market pick up some steam. As for execution, the trader is handling his positions via LBank and intends to add more exposure once any breakouts are confirmed.
This article reflects the channel author’s opinion and is not investment advice.
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Source — Crypto World: https://www.youtube.com/watch?v=RaB4BAGiY2M
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