In the latest analysis by Crypto Capital Venture, the current state and potential future movements of Bitcoin and Cardano were examined.
The analyst shared intriguing patterns and indicators that suggest major market movements may be on the horizon.
What you'll learn 👉
Bitcoin’s Mixed Price Action
Bitcoin’s price struggle represents a struggle between buyers and sellers. However, the weekly chart is giving some hope as BTC is seen returning to the top of the Fibonacci bull market zone, a bullish pattern that has been displayed in previous cycles.
The Relative Strength Index (RSI) on the weekly chart has cooled down from overbought levels, currently hovering around 54. This reset to the mid-range area post-halving is reminiscent of previous cycles and could indicate substantial upside potential.
On the daily chart, an inverse head and shoulders pattern is forming, though not yet confirmed. The right shoulder is attempting to form, with a potential neckline of around $72,000.
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This formation, if completed, could suggest a $9,000 upside target. However, the battle between bulls and bears is intensifying at key Fibonacci retracement levels and moving averages.
Bitcoin needs to break above its 20-day average price of around $63,600 and its 50-day average price of $66,400 before investors get more confidence about its price going up.
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Show more +Cardano’s Potential Rally
Cardano (ADA) looks like it might be ready to kick off a rally. ADA has been trading in a tight range since March as seen on the daily chart. But now its price has broken above 20-day average price, and the next important level to watch is the 50-day average price around $0.43.
The weekly chart for Cardano presents even more compelling evidence of a possible surge:
- The Stochastic RSI has been oversold since April, a condition that has historically preceded meaningful upward moves.
- The RSI has completely reset from overbought levels in late 2023, suggesting room for upside potential.
- The MACD histogram has been pivoting since April, slowly making its way back up.
These technical signs point to the possibility that ADA is about to make a substantial increase, as does Cardano’s track record of shocking investors with unexpected rallies.
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