Major coins traded mixed Tuesday evening as the global cryptocurrency market cap declined 0.8% to $973.7 billion at press time.

Price Performance Of Major Coins

Coin	24-hour	7-day	Price
Bitcoin BTC/USD	-1.3%	-7%	$19,963.73
Ethereum ETH/USD	0.3%	-6.2%	$1,548.52
Dogecoin DOGE/USD	-3.3%	-10.3%	$0.06

Top 24-Hour Gainers (Data via CoinMarketCap)

Cryptocurrency	24-Hour % Change (+/-)	Price
Flow (FLOW)	+5%	$2
NEAR Protocol (NEAR)	+6.5%	$4.28
Nexo (NEXO)	+3.5%	​​$1.02

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Why It Matters: Bitcoin slipped below the psychologically important $20,000 level on Tuesday as it tracked a weak finish in equities. The S&P 500 and Nasdaq both closed 1.1% lower, while their futures were flat at press time.

New York Federal Reserve President John Williams took a hawkish stance on Tuesday. He told the Wall Street Journal that “we’re going to need to have a restrictive policy for some time.”

“I do think with demand far exceeding supply, we do need to get real interest rates … above zero,” he said. “We need to have a somewhat restrictive policy to slow demand, and we’re not there yet.” 

Edward Moya, a senior market analyst at OANDA, said that risk aversion is “firmly back” and has sent the apex coin below the $20,000 mark. 

“If the broad selloff on Wall Street intensifies, Bitcoin is looking very vulnerable here. If the S&P declines by 3% over the next few days, that could be the catalyst to send Bitcoin back towards the June lows,” said Moya in a note, seen by Benzinga.

The dollar index, a measure of the greenback’s strength against six of its peers, saw a pullback on Tuesday. At press time, it was down 0.1% at 108.65.

Justin Bennett said that the dollar index was holding below the 109.30 resistance but consolidation below this is “usually a sign of bullish things to come.”

The $DXY is still holding below 109.30 resistance for now.

But consolidation below resistance is usually a sign of bullish things to come.

I think we see 112-113 in Sept.$BTC $ETH #crypto pic.twitter.com/wDp97uROAJ

— Justin Bennett (@JustinBennettFX) August 30, 2022

The trader tweeted, “I think we see 112-113 in Sept.” Notably, Bitcoin has lately moved in the opposite direction to the dollar index.

Chartist Ali Martinez said almost 82,600 BTC, worth $1.7 billion, have been withdrawn from known cryptocurrency exchange wallets over the last month.

#Bitcoin | Roughly 82,600 #BTC have been withdrawn from known #crypto exchange wallets over the past month, worth roughly $1.70 billion! $BTC pic.twitter.com/1YEEgRpDGI

— Ali Martinez (@ali_charts) August 30, 2022

Michaël van de Poppe tweeted that Ethereum is on the path toward $2,200 as it approaches the transition to a proof-of-stake mechanism. 

“I’m still expecting continuation of this upwards structure, whether or not [Bitcoin] sweeps $19K for liquidity,” said the cryptocurrency trader.

Decent retests across markets happening and $ETH, for instance, is still on the path towards $2,200 as one of the biggest events is approaching -> the Merge.

I’m still expecting continuation of this upwards structure, whether or not #Bitcoin sweeps $19K for liquidity.

— Michaël van de Poppe (@CryptoMichNL) August 30, 2022

Amid a volatile trading week the “disbelief” is strong among Ethereum traders, said Santiment on Twitter. 

The #Ethereum disbelief is strong from traders during a particularly volatile week of trading. The crowd has #shorted, across exchanges, at the largest ratio since June of 2021. Historically, price rises are more prevalent in these conditions. https://t.co/DpG1E1TI9Y pic.twitter.com/e6xAWOXeFM

— Santiment (@santimentfeed) August 30, 2022

“The crowd has [shorted], across exchanges, at the largest ratio since June of 2021. Historically, price rises are more prevalent in these conditions,” said the market intelligence platform. 

Read Next: Vitalik Buterin Issues This Important Reminder Before Ethereum Merge

• Cardano price sees bears pushing price action further to the downside.
• ADA price has tested $2, but with lower highs, Cardano price is getting squeezed lower.
• The pivotal level at $1.89 could make or break the uptrend.

Cardano (ADA) price has seen bulls attempting multiple times to break above $2.40. With a couple of failed attempts and the 55-day Simple Moving Average (SMA) keeping any further upside capped, ADA price is starting to get squeezed to the downside, with lower highs and lower lows. A break below $2 would see a test or break of the pivotal $1.89, deciding on the trend since May.

ADA price reaction at $1.89 to determine upcoming trend

Cardano price has been trying to recover after an almost complete reversal from its bull run throughout August. ADA price is, however, showing a bearish pattern with lower highs and lows hitting $2. A breakdown of $2 looks inevitable and could bring a heavy fought battle between bears and bulls at the pivotal level at $1.89.

ADA price has been respecting that $1.89 mark very well since May, with each time clear breaks above or below and tests that proved its support or resistance. As Cardano price nears that level, expect bulls to flee the scene and bears to await a clear break of that same level. A sort of vacuum will be formed, with neither bulls or bears daring to engage around this area.

ADA/USD daily chart

ADA price will see liquidity dry up, and a break below $1.89 would be pretty violent towards $1.67. As bears face the S1 monthly support pivot around this level, expect bulls to try and defend any further downside. Should more global forces blow more headwinds, expect a retest of the red descending trend line around $1.23. 

As global markets – certainly with the Nasdaq – have been on the front foot these past few days, expect $1.89 to defend the uptrend and see bulls flocking in to keep ADA price at or above this level. Bears will be washed out of their short positions, and Cardano price will ramp up again to test and break $2.40 to the upside. A test of $3.16 is possible if a perfect scenario is created, with stock markets and Bitcoin rallying towards new all-time highs.