Analysis of Bitcoin and Cardano Prices for August 2, 2021
Bitcoin’s price is falling from $42,000, with losses aiming for $38,000 and $36,000.
After staying above the 50 SMA, Cardano appears to be on the upswing.
The new week appears to have started on a negative note, with cryptocurrencies losing significant amounts of money in the single digits.
The price of bitcoin rose above $42,000 over the weekend, but the rally was short-lived. The bellwether cryptocurrency is currently trading under $40,000 at the time of writing.
The majority of altcoins are also in the red, with Ethereum losing 2.8 percent of its value. To maintain the rally, the pioneer smart contract token must retake support above $2,600, as previously indicated. Furthermore, with the imminent London hard fork, Ether has a big optimistic outlook.
Bitcoin (BTC)
BTC plummeted and destroyed support at $40,000 after retreating from highs just around $42,000.
With Bitcoin trading at $39,830, bears appear to have complete grip.
On the four-hour chart, the 50 Simple Moving Average (SMA) is poised to give much-needed support.
The short-term technical picture, on the other hand, shows Bitcoin dancing on the verge of a precipice.
Following a recent sell signal, the Moving Average Convergence Divergence (MACD) gives validity to the bearish story.
The momentum of an asset is calculated by the MACD, which tracks its trend.
When the 12-day EMA crosses below the 26-day EMA, a sell signal is generated.
The indicator’s continued descent towards the mean line bolstered the gloomy picture.
As a result, if the 50 SMA support fails to hold, Bitcoin will test levels as low as $38,000 and $36,000.
Four-hour chart of BTC/USD
Cardano (ADA)
Cardano has dropped from its weekend highs of about $1.4, similar to Bitcoin.
Because the ascending parallel channel’s lower boundary came to the bulls’ rescue, the correction was harsh but temporary.
The four-hour chart’s 50 SMA bolstered this support, allowing buyers to reclaim control.
Cardano is currently trading at $1.32, with bulls battling for gains over the channel’s middle line.
It’s worth noting that a transaction above this level might boost ADA to $1.5, bringing it closer to $2. The RSI’s bounce off the midline indicates that the downtrend has faded, and the bulls now have the opportunity to launch another attack mission.
Four-hour graphic of the ADA/USD
On the other hand, the MACD indicates a slight bearish impulse that, if ignored, could result in more sell orders. If the above-mentioned assistance fails, ADA will be exposed to losses. Bears’ capacity for wreaking havoc will necessitate the usage of areas between $1.2 and $1.
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