Bitcoin, Cardano analysis: August 2, 2021

Bitcoin’s price correction of $ 42,000 remains, with losses of $ 38,000 and $ 36,000.
Cardano is bullish after holding above 50 SMA.

The new week appears to have started on a downward note as cryptocurrencies suffered significant single-digit losses. The price of Bitcoin rose above $ 42,000 over the weekend, but the upward trend was short-lived. At the time of writing, the bellwether cryptocurrency was back trading at under $ 40,000.

Most of the altcoins are also red, starting with a loss of 2.8%. As previously reported, the pioneer smart contract token must provide recoverable support above $ 2600 to support the upward trend. Moreover, ether has a big bullish outlook, especially in connection with the upcoming London hardfork.

After the removal of highs of just over $ 42,000, BTC fell, destroying support at $ 40,000. The Bears appear to have full control of the situation, with bitcoin trading at $ 39,830.

The 50 Simple Moving Averages (SMA) on the four-hour chart correspond to the level that provides much-needed support. However, a short-term technical photograph shows bitcoin dancing on the edge of a high cliff.

Moving average convergence divergence (MACD) adds credibility to the decline date following a newly introduced sell signal. If the MACD follows an asset’s trend, it calculates the momentum.

The sales signal is activated when the 12-day EMA passes under the 26-day EMA. The continued movement of the indicator towards the midline also strengthened the outlook for the decline. Therefore, if support for 50 SMA does not continue, bitcoin will explore the $ 38,000 and $ 36,000 levels, respectively.

BTC / USD four-hour chart

BTC / USD price chart from Tradingview
Cardano, like Bitcoin, came out of the weekend’s high of almost $ 1.4. The correction was sharp but short, as the lower boundary of the upstream parallel channel came to the aid of the Bulls. 50 SMA in the four-hour chart reinforces that support, allowing buyers to regain control.

Cardano, meanwhile, is trading decidedly at $ 1.32 as expected

Join the Discussion

  • BrokerEUR/USD
    IG 0.6pips (fixed) margin: 3.33%
    Core Spreads 0.6pips (variable) margin: 3.33%
  • Back to top