- BTC and ADA see gains as traditional markets rise too.
- Should the S&P 500 and the Dow Jones see resistance on their charts, BTC and ADA may see a price pullback
- Vasil Hard Fork delay has postponed the ADA bullish move.
Recently, the Dow Jones and the S&P 500 rallied by 2.68% and 3.06%, respectively, in the last 24 hours. Now that these indexes have risen in price, will the largest cryptocurrency by market cap, Bitcoin (BTC), follow suit? If so, will the rest of the crypto market rise slightly as investors take profit and purchase altcoins, especially Cardano (ADA)?
According to the crypto market tracker, CoinMarketCap, BTC’s price has risen around 2.17% in the last 24 hours as its price has climbed to $21,282.60. This recent move by BTC’s price has contributed to its positive weekly performance as the figure now stands at 4.84%.
Looking at the 6-hour chart for BTC/USD, a bullish inverse head and shoulders pattern has formed, with a negatively sloped neckline. Following the recent rally by the S&P 500 and Dow Jones, the price of BTC broke above the neckline.
As a result, BTC’s price is now above the 9 and 20 EMA lines, which have proven to be levels that BTC’s price could not stay above for sustained periods of time. This may suggest that BTC’s price could fall. It will depend on what happens in the traditional markets following the recent rally. If prices in the traditional market pull back, we may see it happen with BTC as well.
ADA’s price is also up in the last 24 hours as its price is now at $0.5017 – a 3% rise in price over the last 24 hours.
The 6-hour chart for ADA/USD shows that the price of ADA has risen above the 9 MA line. However, similar to BTC with the 9 and 20 EMA lines, ADA has not been able to stay above the 9 MA during this bear market. Furthermore, the price of ADA is at a key resistance level that has been tested and held its own more than once on the 6-hour chart.
Given the current price of ADA and its position relative to the 9 MA and the resistance level on the chart, as well as the fact that the Vasil Hard Fork has been delayed by a month, we could see the price of ADA dip a bit. Once again, this is dependent on what happens in the traditional markets.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.