Bitcoin, BTC / USD, Cardano, ADA / USD Topics of conversation:
The crypto rally has continued over another trading weekend, and this time bitcoin is trading above the 50,000 mark for the first time since mid-May. There was a quick support test on Sunday in an area of prior resistance, whereupon the bulls rushed to push the coin back above 50,000.
However, resistance emerged shortly afterwards when a Fibonacci retracement hit the high at 50,554 before prices fell back below the psychological level of 50,000.
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Bitcoin (BTC / USD) daily price chart
Diagram created by James Stanley; Bitcoin on Tradingview
At this point, it appears that there is some short-term support to be seen around a number of previous swing highs that formed prior to the breakout.
Bitcoin (BTC / USD) four-hour price chart
Diagram created by James Stanley; Bitcoin on Tradingview
Cardano continues breakout – new all-time highs
While a number of cryptocurrencies have kept moving, Cardano is gaining more and more attention. Ethereum co-creator and Cardano creator Charles Hoskinson announced the Alonzo hard fork earlier this month, which would bring Cardano Ethereum closer by allowing smart contracts to be encoded on the blockchain. This would provide Cardano with significant added value and since it is one of the few “green” cryptocurrencies on the market that uses the Proof-of-Stake Protocol versus Proof-of-Work, and it could continue to be a significant one Give interest in this area.
After Cardano bottomed out in the support zone around the $ 1 mark at the end of July, it broke through further in August and is now looking at the $ 3 mark. On Friday and Saturday prices were trapped at previous all-time highs around the 2.45 mark, but a strong breakout on Sunday has continued through Monday so far. The downside of such a move is a lack of nearby support potential, but given the strength of the breakout, traders could expect corresponding pullbacks to be of a similar magnitude. So caution is still of the utmost importance as volatility remains very high.
Cardano daily price chart
Diagram created by James Stanley; Cardano on Tradingview
— Written by James Stanley, Senior strategist for DailyFX.com
Contact and follow James on twitter: @JStanleyFX
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