Bitcoin, BTC/USD, Cardano, ADA/USD Talking Points:
The crypto rally has continued through another weekend of trade, and this time we have Bitcoin moving back above the 50k marker for the first time since mid-May. Sunday saw a quick support test at an area of prior resistance, after which bulls pounced to drive the coin back above the 50k marker.
Resistance showed up soon after, however, as a Fibonacci retracement plotted at 50,554 ended up catching the high before prices pulled back below the 50k psychological level.
Bitcoin (BTC/USD) Daily Price Chart
At this point, it appears that a bit of short-term support is showing around a batch of prior swing-highs that had built ahead of the breakout.
Bitcoin (BTC/USD) Four-Hour Price Chart
Cardano Continues Breakout – Fresh All Time Highs
While a number of cryptocurrencies have remained on the move, it’s Cardano that’s starting to get more and more attention. Ethereum co-creator and Cardano creator Charles Hoskinson announced the Alonzo hard fork earlier this month, which would make Cardano closer to Ethereum in the fact that smart contracts can be coded on the blockchain. This would provide a significant amount of additional utility to Cardano and given that it’s one of the few ‘green’ cryptocurrencies out there, using proof-of-stake protocol versus proof-of-work, and there could be considerable interest continuing to percolate in this area.
After bottoming out in the support zone around the $1 marker in late-July, Cardano has continued to breakout through August and is now staring down the $3 marker. Friday and Saturday saw prices get caught at the prior all-time-high, around the 2.45 mark, but a strong breakout on Sunday has thus far continued through Monday. The downside of such a move is a lack of support potential in the proximity, but given how strong the breakout has come in, traders might expect corresponding pullbacks to carry a similar magnitude. So caution continues to be of the upmost importance as volatility continues at a very strong pace.
Cardano Daily Price Chart
— Written by James Stanley, Senior Strategist for DailyFX.com
Contact and follow James on Twitter: @JStanleyFX