Bitcoin (BTC) price is challenging the $39,600 level, with potential to dip further to $38,500, following a sell-off triggered by a failed attempt to surpass $49,000. This downturn was exacerbated by rumors of a postponed ETF approval by Matriksport, which dampened the initial ETF enthusiasm among investors.
Cardano (ADA) experienced a rapid price increase in its weekly chart after September 2023, reaching a year’s peak at $0.68 in December. This surge was a festive turn for investors, given ADA’s prolonged period below $0.4 and multiple failed attempts to recover.
However, those who sold below $0.4 and strengthened resistances didn’t regret much as ADA’s price didn’t climb further and is now targeting below $0.45 again.
While last year’s peak raised hopes for long-term breakouts leading to significant gains, long upper wicks reflected high selling interest from those waiting for the $0.4 resistance to be breached. With the emergence of alternative smart contract platforms, Cardano faces stiff competition.
ADA’s price is expected to continue its downward trend as the weekly RSI approaches a neutral zone and BTC fails to regain support. Uncertainty looms with the upcoming PCE data, and investors are wary of the possibility that losses exceeding $10,000 may not suffice for a price correction. With GBTC outflows at notable levels and the cumulative market cap falling below $50 billion, the best strategy might be to sell and wait, a stance that only time will validate.
