Bitcoin continues to encounter significant resistance near the $110,000 price level, leading to a consolidation phase within the cryptocurrency market. The asset has oscillated between $100,000 and $110,000, struggling to achieve a decisive breakout.
Market analyst Eugene Ng has issued a warning regarding potential downward pressure on altcoins. Ng points to unlocking pressures and a reduction in market holdings as key factors that could lead to a gradual decline in the Total3 market capitalization, which tracks assets excluding Bitcoin and Ethereum.
Highlighting the challenging trading environment, Ng advocates for a cautious approach. He recommends lower-frequency trades focused exclusively on high risk-reward setups and emphasizes the importance of implementing strict stop-loss protocols.
Ng specifically cautions traders against chasing sentiment-driven price pumps in altcoins. Reflecting this view, he maintains minimal exposure to altcoins, concentrating instead on short-term tactical positions.
The analyst further notes that without a decisive Bitcoin breakout establishing new highs, momentum within the altcoin sector is likely to continue slowing.