Joey of TheChartGuys sees the current softness in Bitcoin and metals as a possible precursor to a correction across the board for commodities and cryptocurrencies. In his most recent read on the market, he is advising a degree of caution given that some key support levels have been put to the test and signals are at odds with one another.<\/p>\n
The trader points out that Ethereum and Bitcoin have both lost important support levels. For Joey, that kind of breakdown is indicative of a monthly correction getting underway in the crypto space. It is not uncommon for such losses to be followed by more downside in digital assets, which is why he would have traders reassess their positions and keep a close eye on these technical developments.<\/p>\n
One can see the same sort of weakness in the metals sector as is evident in Bitcoin. Joey notes that metals have been on a downward trend; and although some traders are speculating on a double bottom for gold and silver, there is no confirmation of such a pattern to date. Should support not materialize in the near term, it is only a matter of time before more losses are posted ahead of a monthly bottom. In light of this kind of uncertainty, the prudent course for any trader is to keep a watchful eye on price action rather than make assumptions that a reversal is around the corner.<\/p>\n
Joey is quick to point out that the technology sector is holding its own, with indices like SMH and NASDAQ in good shape, even as headlines are preoccupied with softness in Bitcoin and metals. There is no shortage of strength in major names such as NVIDIA and AMD, which are doing the work to support the wider market. But he would be remiss not to warn that this kind of performance is no shield against a correction should other sectors show continued weakness. One has to look at the divergence between tech and the likes of crypto, metals, or the Russell and XLI to see just how complicated the current environment is.<\/p>\n
According to Joey, one cannot overstate the value of keeping an eye on key support and resistance levels as well as ratio charts when making trading decisions. He also notes that the market is made all the more complicated by a robust US dollar and elevated yields. On the other hand, should weaker areas such as XLF show some signs of life, it would put a better complexion on the indices. For now, the prevailing conditions call for a close watch on intermarket dynamics and technicals; they are likely to be what drives the next big move.<\/p>\n
Joey of TheChartGuys has put it plainly: with the weakness on display in Bitcoin and metals of late, traders would be wise to keep a close watch for a correction in those areas. Yet he is also quick to point out that one should not miss the upside in robust sectors such as technology. In the end, when the market is this fluid and hard to read, there is no substitute for being adaptable and paying attention to what the technical indicators are telling you.<\/p>\n
This article reflects the channel author\u2019s opinion and is not investment advice.<\/em><\/p>\n Every call by TheChartGuys and how it played out \u2014 in the BuyCrypt bloggers tracker<\/a>.<\/em><\/p>\n Source \u2014 TheChartGuys: https:\/\/www.youtube.com\/watch?v=SFBuYOnFzNA<\/a><\/em><\/p>\n <\/p>\n Explore how you can practice trading Bitcoin and metals risk-free to prepare for potential market corrections. Practice trading risk-free<\/a>.<\/p>\n <\/p>\n