- Bitcoin retests $40,000 support while recovery above $42,000 seems shaky.
- Cardano holds marginally above $2, but a breakdown to $1.5 still lingers.
The cryptocurrency market value is back under $2 trillion and precisely holding at $1.97 trillion following a selloff that has persisted since Sunday. Bitcoin has explored levels close to $40,000 after hitting highs close to $49,000 on Friday last week.
The rest of the market is deeply in red while dealing with the ravaging bearish wave. Ethereum can barely hold above $3,000 following a correction from areas past $3,600 last week. As reported earlier, Ripple extended the bearish leg to $0.86 but has recovered to $0.94 while bulls reach out for $1.
Bitcoin is back on the drawing board after losing ground at the previous demand zone around $44,000. The bearish outlook poked more holes in BTC’s boat, resulting in another dip that took a pit stop in the demand zone marginally above $40,000.
Meanwhile, the flagship cryptocurrency is trading at $42,434 amid a bearish building momentum. If the immediate support at $42,000 shatters, a return to $40,000 is plausible. However, buyers are expected to put up an intense fight at this level to prevent BTC from exploring areas below $40,000.
Realize that the bellwether cryptocurrency is already oversold based on the Relative Strength Index (RSI) position. Although the oversold conditions are within a short timeframe (four-hour), they often suggest a recovery in the cards.
Keep in mind that the demand tuned supply zone at $44,000 will create a formidable overhead barrier as Bitcoin makes its way toward $50,000 again.
BTC/USD Four-Hour Chart
Cardano has continued to lose ground since trading an all-time high of $3.15 on September 2. The platform that recently achieved the smart contract support status is trading slightly above $2 but had earlier touched $1.91, levels not seen since August 19.
The addresses in the supply zone at $2 seem to be focused on averting further losses. However, there is a possibility that Cardano will dive deeper. A daily close under $2 would trigger immense sell orders, raising overhead pressure. In this case, Cardano will close the gap to the next key demand zone at $1.5.
ADA/USD Daily Chart
The 100-day Simple Moving Average (SMA) is in place to provide the much-needed support, preventing ADA from dropping to $1.5. Nonetheless, the demand zone at $1.5 is the most robust buyer congestion zone, reinforced by the 200-day SMA.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.