Analyst warns against FOMO at Bitcoin resistance level

Bitcoin is sitting at a resistance level, and yet analyst damskotrades sees more and more investors chasing the market after missing earlier big moves. He is optimistic about the market in general, but warns that anyone who now steps in impulsively with leverage or out of pure FOMO will be the first to sell at a loss if the market continues to move sideways.

In brief:

• Bitcoin is at $76.606 and is sitting at a technical resistance level
• Analyst damskotrades sees growing euphoria and more Robinhood rug launches
• His advice: build positions gradually and focus on tokens in strong sectors

Bitcoin at resistance while euphoria grows

Bitcoin is currently trading at $76.600, down 1.6% in the past 24 hours. According to analyst damskotrades, the price is exactly at a resistance level, a moment that calls for caution.

At the same time, he sees an increase in the number of so-called rug launches via Robinhood, in which projects collapse shortly after launch. He describes the mood around Robinhood as euphoric, which he regards as a warning sign. Blockchainstories previously reported on how Robinhood Chain is overtaking Ethereum in daily app revenue, which explains the interest in the platform.

Advice: no impulsive purchases, wait for structure

Damskotrades says he himself remains optimistic about the market and is not reducing his position in Robinhood. Still, he deliberately keeps a large part of his capital on the sidelines while waiting for more clarity: an upward breakout, a deeper pullback or more price structure.

His warning is aimed in particular at investors who are now entering for fear of missing out, especially when they do so with leverage or through so-called on-chain laggards, coins that only react late to a move. If the market then continues to move sideways, he believes they will be the first to sell at a loss.

His advice is clear: build positions step by step, do not trade arbitrarily and focus on the main tokens within sectors that have momentum. In his view, many smaller alternatives will lag behind or eventually become worthless. September is historically the weakest month for Bitcoin, which gives extra reason for caution.

He closes with a reminder that he regards as his guiding principle: Bitcoin is and remains the benchmark for the market.