- 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.