A closer look at the recent performance of BTC, ETH, and ADA and what could be coming next.
The formation of a certain setup suggests that BTC could be gearing up for a major price move, yet the exact direction can’t be predicted.
One popular analyst believes the current conditions present an ideal opportunity to invest in ETH, while Cardano’s ADA has lost momentum and might be headed for a substantial decline.
Up or Down for BTC?
The primary cryptocurrency has been hovering in the narrow range of $63,000-$65,000 over the past week, currently trading just south of the lower boundary. The X account Barchart claimed that the minor volatility has resulted in a huge squeeze of the Bollinger Bands.
The technical indicator, created by John Bollinger in the 1980s, features a moving average framed by two channels (upper and lower) that widen in turbulent markets and contract when things calm down.
Tightening the bands is usually a precursor to a big move, but it remains unclear whether it will be up or down, with historical data showing mixed signals. In March, the Bollinger Bands (on a monthly scale) tightened like never before, and shortly after, BTC plunged from approximately $75,000 to roughly $65,000.
It was a completely different story in May last year. The bands squeezed at a time when the asset was worth around $95,000 and, weeks later, exploded above $110,000.
Time to Buy ETH?
The second-largest cryptocurrency has been trading well below $2,000 for the past few months, with many traders and investors perhaps anticipating further declines that can confirm the cycle’s bottom. Analyst Michael van de Poppe believes the moment will never come, arguing that the ideal time to hop on the ETH bandwagon is right now.
You may also like:
“It’s always awkward to be positioning yourself into a position, as that’s the purpose of the markets. Previous breakouts of the market have resulted in generally big returns, as ETH is known for volatile movements. In that sense, last time a 60% breakout in less than a week took place. In 2023, the same happened,” he said.
Ali Martinez and Gerla also gave their two cents on the matter. The former thinks the June fall to $1,580 was the launchpad for a potential uptrend, setting $3,000 as the target. The latter was even more optimistic, envisioning a price explosion to a new all-time high of $10,000.
ADA Hits a Wall
Cardano’s native cryptocurrency started August on the right foot, eventually pumping to nearly $0.21 (the highest mark since early June). During its uptrend, the asset was the subject of numerous bullish predictions, with some commentators expecting a surge to $3.
However, the bears regained control, and overall sentiment shifted drastically. Ali Martinez paid attention to factors such as the declining number of whales, the formation of a death cross between Cardano’s MVRC ratio and its 7-day simple moving average, and the sell signal on the TD Sequential indicator to predict a potential plunge as low as $0.145.
Sjuul | AltCryptoGems also presented a cautious outlook. He claimed that ADA had “a nice run, but it seems in trouble now,” as “the structure is breaking bearishly, with a fresh lower low.”
Other Articles
Bitcoin performed better under Biden than Trump
No Comment! Be the first one.