Following a solid week, Bitcoin continues to lead other cryptocurrencies on a bullish attack into the coming weekend.
Bitcoin and many other coins have hit many hard waves since last weekend and remained in uncertain waters looking forward as investors focused on U.S. Federal Reserve Chair Jerome Powell testifying to Congress on the economy and how the Fed plans to fight inflation.
On Thursday, Federal Reserve Chair Jerome Powell concluded two days of testimony in front of Congress, speaking in front of House members.
In remarks for the Senate Banking Committee a day prior, Powell said the Fed understands the “the hardship high inflation is causing. We are strongly committed to bringing inflation back down and moving expeditiously to do so.”
Powell’s testimony comes after the Fed hiked rates by 75 basis points, or 0.75 percentage points, earlier this month. That marks the Fed’s biggest rate hike since 1994.
Meanwhile, Bitcoin remains rangebound as most of the crypto market continues to try and climb out of the bearish territory while holding above the key support area of US$19,000.00.
Traders have remained more cautious recently and avoid getting caught on the wrong side of the trade in the event the US$19,000.00 level gives way, which may trigger the bearish sentiment further towards the region of US$12,300.00.
That being said, from a technical perspective, it is noticeable that the bulls appear to be getting the upper hand, therefore, giving the chance of a potential challenge at US$23,500.00.
Based on the technical indicators for Bitcoin, the Relative Strength Index (RSI) 3-daily pattern rebounded out of extreme oversold condition and is now on the verge of supporting a positive signal.
Meanwhile, the Moving Average Convergence Divergence (MACD) oscillator supports a negative bias, however, weakened, while the ADX (trend) indicator supports a trending market.
Although there are many hurdles to clear to support any bullish call, a US$23,500.00 break would reveal the region of US$28.600.00. Reassess from there.
Conversely, although the US$19,000.00 was penetrated at the weekend, a daily close beneath this level observes little support until US$12,300.00. Reassess from there.
Daily Chart of Bitcoin
Ethereum, on the other hand, has been on the rise as well, following in the steps of Bitcoin.
Viewing the world’s second-largest cryptocurrency, Ethereum continues to hover above the US$1,000 mark (or the support at US$936.00) and remains focused on the region of US$1,640-70, with the immediate assessment viewed to US$1,300-60.
Based on the technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicators have reinstated a positive signal. At the same time, the Moving Average Convergence Divergence (MACD) oscillator supports a negative signal. However, it is in a prime position of potentially posting a positive bias, while the ADX (trend) indicator now supports a ranging market (no trend).
Although the sentiment has been somewhat bearish, it is assessed that only a daily close beneath US$936.00 would be considered negative and expect further downward pressure, with the measured trajectory seen to the area of US$620.00. Reassess from there.
Daily Chart of Ethereum
Binance, the cryptocurrency issued by the Binance exchange, has strengthened and, therefore, could see further bullish prospects unfold as the RSI and the MACD are now married to a positive bias.
Based on the technical pattern, the Relative Strength Index (RSI) 3-daily and weekly ‘lookback’ indicators hold a positive signal, while the Moving Average Convergence Divergence (MACD) oscillator supports a weak positive signal, while the ADX (trend) indicator is supporting a ranging market.
While the market sustains above the US$US$196.00 to US$200.00 level, it expects further improvements to the bullish case in the short-term, mainly driven by the technical patterns.
Therefore, the market bulls need to clear the $236.00 resistance level to reinstate the upside call to US$280.00. Reassess from there.
Conversely, a daily close beneath US$196.00 may trigger further weakness towards a potential measured target of US$150.00 – Reassess from there.
Daily Chart of Binance
At present, Cardano’s (ADA/USD) price action remains on the road to recovery as prices slowly elevate away from the major support at US$0.42.
Based on the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator holds a positive bias, while at the same time, the Moving Average Convergence Divergence (MACD) supports a weak positive bias, and the ADX (trend) indicator supports a ranging market.
While the US$0.42 support is intact, overall, it keeps the market bulls focused on the hurdle of US$0.62/US$0.63, which, if cleared, opens the path further towards the region of US$0.72 to US$0.77.
However, if we witness a decisive break of US$0.42 may give a devastating outlook for the bullish assessment, as this could open the decline further into uncharted waters and give a measured move from a US$0.42 break to US$0.30-US0.33.
Daily Chart of Cardano