Crypto’s impressive bounce has changed the technical picture of this market completely. Until recently, the question was how long the market would continue consolidating. Currently, we see a battle taking place for which major crypto can get as close to its former all-time highs as possible.
Looking at BTC, ETH, and ADA, we see new higher-highs and higher-lows. Up until the tail end of this last move, ether had led the bulls, rallying first and furthest, bitcoin was in second place, and ADA was lagging behind.
However, on Tuesday, August 10, ADA put in a sudden and powerful rally, climbing from around $1.47 to a high of $1.90 within a day. Even after the bout of selling on Aug 12 (which saw BTC retracing by 6% to ETH and ADA’s 9%), ADA is already back over its recent highs. It’s currently trading at around $1.95, while BTC and ETH have yet to bounce.
This recent price action is important for 3 reasons.
1. It breaks the trend of lower-highs and lower-lows we’ve been seeing across the market since May.
2. It has taken BTC back above the 20-week MA for the first time since May.
3. It provides further confirmation that ADA is likely to be the lead bull in this market cycle (like ETH was 2016-2018).
What to look for now
Thursday’s consolidation took BTC back down to just above the 20-week MA. Expect a battle for this level throughout Friday and over the weekend as it’s the confirmation the entire market is looking for before rallying further.
If the rally can be sustained without further downside, look to ADA to make a bid for its all-time high at around $2.50. Also, today (Friday 13) the ADA community await a firm date on its next upgrade, expect some volatility around this news. As always, HYCM will keep you informed of any further developments.
*Note: Cryptocurrencies are not available for trading under HYCM (Europe) Ltd and Henyep Capital Markets (UK) Ltd.