The price of Bitcoin (BTC) has been consolidating in the past few days, which has got the rest of the cryptocurrency market going. This often happens when Bitcoin starts consolidating. This gives the rest of the market a chance to catch up.
Cardano (ADA) is one such cryptocurrency that gained 170% in February alone, reaching a price of nearly $ 1 for the first time.
Cardano’s BTC couple shows signs of life
ADA / BTC 3-day chart. Source: TradingView
However, a lot of information can be inferred from the BTC chart as it is just beginning to wake up from its bear market slumber. The most recent run created a new higher high – the highest since July 2018 – which is a big signal for the uptrend to continue.
However, the all-time high in the BTC pair is still 380% away. Such a run would of course increase its value in USD even further.
Altcoins have shown massive strength in their USD pairs as many of them create new all-time highs. However, the BTC pairs of these altcoins still have a lot of upside potential.
This means that the market may just be starting the new bull cycle. In Cardano’s case, the BTC pair is approaching a significant zone of resistance where a breakout does not appear likely. However, once ADA price breaks this resistance zone, it is expected to continue towards 0.00003500 sats.
Bitcoin dominance hits rock bottom
Bitcoin Dominance 3-day chart. Source: TradingView
A major correction typically occurs after a major rally. Anyone who has ever held altcoins knows this very well. Often times, the Bitcoin Dominance Chart can tell you when these corrections will take place.
Historically, the best time to buy altcoins is December. This was recently confirmed again as altcoins saw massive gains in the new year.
However, the graph also shows that rallies to relieve Bitcoin dominance can take place before further downward moves. This often happens in February and March, when a healthy correction can be expected.
After such a possible pullback, a bigger uptrend is likely for altcoins, especially in their respective BTC pairs.
Crucial levels for Cardano
ADA / USDT 1-day chart. Source: TradingView
Cardano’s USDT chart shows massive vertical movement making it quite difficult to pinpoint support and resistance levels. However, several points of interest can be found based on the daily timeframe using the Fibonacci indicator and historical price action.
The first point is in the range of $ 0.65 to $ 0.70 and coincides with the Fibonacci value of $ 0.35 to $ 0.382. The next support zones are at $ 0.55 and $ 0.42-0.46 when this level does not hold.
ADA / USDT 4 hour chart. Source: TradingView
The 4-hour chart for Cardano shows confluence with the 1-day chart, as there is a compression area around the area of $ 0.70. This support zone corresponds to the daily chart, as a Fibonacci level is also found in this region.
If this first support zone is not considered to be support, the next support zone is displayed in the 4-hour table. This support zone is at $ 0.50-0.55.
After a correction or a test of these values, the Fibonacci extension tool also points out interesting points as soon as ADA enters the price determination. When Cardano triggers another pulse wave, the levels to be observed are USD 1.50, USD 2.35 and USD 3.20.
Overall, the likelihood of a massive upward trend for cryptocurrencies is increasing every day.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.
Comments are closed.