Cryptocurrency Price Levels To Watch Over The Weekend For Cardano (ADA) And Bitcoin (BTC)
Above: Cardano (ADAUSD) Chart
Cardano – like many of the coins I follow – printed a clear example of hidden bearish divergence on its daily chart. Hidden bearish divergence is warning that a continuation move lower is likely. For Cardano, this may be the case. At the time of writing this article (1830 EST), Cardano is down -6.73%. This is the second day in a row where bulls have pushed Cardano higher only to face stiff short pressure at the Kijun-Sen. If Cardano closes below the Tenkan-Sen on the daily chart, then we may see a very, very likely move lower. The next support zones I see shouldn’t be a surprise to any regular readers. The next primary support zone below $1.20 is the $0.84 – $0.94 value area. But below that is a whole lot of nothing and zero support until the 2021 POC (Point Of Control) at $0.33.
Above: Bitcoin (BTCUSD) Chart
Bitcoin’s price action here is quite bearish. On the daily chart, it shows imminent breakdown lower is likely. The chart above is the weekly chart. There are several items on this chart that I want to call attention to. The first condition is the bearish nature of the Ichimoku chart. Price is below both the weekly Tenkan-Sen and Kijun-Sen and the Tenkan-Sen has just crossed below the Kijun-Sen. A ‘TK-cross’ (when the Tenkan-Sen crosses above/below the Kijun-Sen) itself is not a reliable trade signal, but I’ve learned that significant weight should be given to the TK-cross when a substantial amount of time has occurred since the last TK-cross. For Bitcoin, the last TK-cross was over a year ago during the week of May 11th, 2020. The second bearish condition on the chart is the Chikou Span – it’s trading inside the candlesticks and if Bitcoin were to close the week below 33,000, then the Chikou Span will transition to be being below the candlesticks. This has not occurred since the week of August 26th, 20219. But what really makes me believe we’re heading lower is the lack of any kind of test of the Kumo on the weekly chart since the breakout of the Kumo in June 2020. The blue arrow points to the week of July 19th, 2021 and the 23,244 value area. This value area is shared by a high volume node in the volume profile and the weekly Senkou Span B. The week of July 19th represents a 98-day period from the all-time high and completes an important Gann cycle. I anticipate Bitcoin to be trading near that value area by late July/early August before we start to see a month or so of consolidation before another spike higher to end 2021.