- Bitcoin price correction from $42,000 underway, with losses eying $38,000 and $36,000.
- Cardano looks bullish after holding above the 50 SMA.
The new week seems to have commenced on a bearish note, with cryptocurrencies posting considerable single-digit losses. Bitcoin price had lifted above $42,000 over the weekend, but the uptrend was short-lived. At the time of writing, the bellwether cryptocurrency is back to trading under $40,000.
Most altcoins are also in red, starting with Ethereum’s 2.8% loss. As reported earlier, the pioneer smart contract token must reclaim support above $2,600 to sustain the uptrend. Moreover, Ether has a massive bullish outlook, especially with the upcoming London hard fork.
Following the retreat from highs marginally above $42,000, BTC descended and shattered support at $40,000. Bears seem to be entirely in control, with Bitcoin trading at $39,830.
The 50 Simple Moving Average (SMA) on the four-hour chart is in line to provide the much-needed support. However, the short-term technical picture shows that Bitcoin is dancing at the edge of a high cliff.
The Moving Average Convergence Divergence (MACD) adds credence to the bearish narrative following a recently presented sell signal. As the MACD tracks the trend of an asset, it calculates the momentum.
A sell signal comes into play when the 12-day EMA crosses below the 26-day EMA. The indicator’s ongoing movement to the mean line also reinforced the bearish outlook. Therefore, if the 50 SMA support fails to hold, Bitcoin will explore levels toward $38,000 and $36,000, respectively.
BTC/USD four-hour chart
Cardano, like Bitcoin, retreated from its weekend highs of nearly $1.4. The correction was sharp but brief because the ascending parallel channel’s lower boundary came to the bulls’ aid. The 50 SMA on the four-hour chart reinforced this support, allowing buyers to regain control.
Meanwhile, Cardano is trading at $1.32 as bulls put up a fight for gains above the channel’s middle boundary. Note that trade g above this level could bolster ADA to $1.5, pushing it a step closer to $2.
The Relative Strength Index (RSI) bounce off the midline shows that the downtrend has faded, and it is currently up to the bulls to launch another attack mission.
ADA/USD four-hour chart
On the flip side, the MACD has a minor bearish impulse, which may trigger more sell orders if entertained. A break under the support mentioned above would leave ADA vulnerable to losses. Areas around $1.2 and $1 will have to come in handy to stop the potential havoc that bears could cause.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.