Bitcoin (BTC) has been standardized in recent days, kick-starting the rest of the cryptocurrency market. This often happens as Bitcoin begins to consolidate, giving the rest of the market an opportunity to catch up.
Cardano (ADA) is one such cryptocurrency, which gained 170% in February alone as its price approached $ 1 for the first time ever.
Cardano’s BTC pair is showing signs of life
However, a lot of information can be gleaned from the BTC chart as it is just starting to wake up from the bear market hibernation. The latest wave triggered a new spike higher – the highest since July 2018 – which is a great sign of the continuation of the uptrend.
However, the all-time high of the bitcoin pair is still 380% off. Of course, this would push its dollar value higher.
Altcoins have shown immense strength in their USD pairs, with many of them creating new all-time highs. However, bitcoin pairs from these altcoins still have significant bullish potential.
This means that the market may just start a new bullish cycle. In Cardano’s case, the Bitcoin pair is approaching a significant resistance area, where a breach does not appear likely. However, once the ADA price breaks through this resistance zone, it is expected to continue towards 0.00003500 sits.
The bottoms of the Bitcoin dominance
Substantial correction usually occurs after a significant spike. Anyone with alternative digital currencies knows this well. Bitcoin’s dominance chart can frequently tell you when these corrections will occur.
Historically speaking, the best period to purchase altcoins is in December. This was confirmed again recently as altcoins started to make huge gains in the new year.
However, the chart also shows that bitcoin’s dominance relief rallies could take place before a further downtrend. Most often this occurs in February and March, when a healthy correction can be expected.
After this potential pullback, there is likely to be further upside for altcoins, particularly in their Bitcoin pairs.
Critical levels to watch Cardano
Cardano’s USDT chart shows massive vertical movement, making support and resistance levels difficult to determine. However, several important points can be found based on the daily timeframe using the Fibonacci indicator and historical price action.
The first point was found around the $ 0.65-0.70 area, sticking with the 0.35-0.382 Fibonacci level. Next support areas are at $ 0.55 and $ 0.42-0.46 if this level doesn’t hold.
The 4 hours chart for Cardano shows a convergence with the one-day chart as it shows a pressure area around the $ 0.70 area. This support area coincides with the daily chart as there is a Fibonacci level in this area as well.
If the first support area does not hold as support, then the next support area will be shown on the 4 hour chart. This support area is found at $ 0.50-0.55.
After correcting or testing these levels, the Fibonacci extension tool also signals points of interest once the ADA enters into price spotting. If Cardano were to create a renewed impulse, levels to watch would be $ 1.50, $ 2.35 and $ 3.20.
In general, the probability of a large bullish year for cryptocurrencies increases with each day.
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