The previous seven days have been extremely difficult for the cryptocurrency market as a whole, with a few minor exceptions. In a seven-day period, the most popular cryptocurrency is down 14%. It began the week at roughly $56K, but bears were having none of it and plummeted the price below $42K during the early Saturday trading session. The entire market was red-painted.
After that, it’s been primarily a choppy sideways activity for bitcoin, which hasn’t been able to convincingly recapture the $50K mark, despite tries from Tuesday to Thursday. The rest of the market is likewise showing signs of deterioration and continues to trade in the red.
According to crypto researcher Justin Bennett, the price of Cardano (ADA) and Ethereum (ETH) will largely be determined by whether Bitcoin (BTC) shows bullish or bearish behavior.
Bennett writes in a new issue of the Cryptocademy newsletter that Ethereum’s support near $4,200 is staying strong. According to him, the second-largest crypto-asset might rise much more based on Bitcoin’s next moves. If the market bounces back to $4200 levels, it might open the door to higher levels, such as $4,600. Keep in mind that everything hinges on what BTC does after it reaches the $53,000 resistance level.”
Cardano, the smart contract platform, is currently trading at $1.35, according to the crypto trader. According to Bennett, a climb above $1.50 indicates additional upside potential, while a drop below $1.35 indicates bearishness. He said that ADA has landed in an intriguing position on the rankings. On a daily closing basis, there is a confluence of support of about $1.35 that is currently holding.
He also says that we have to wait and see if this trend continues. As we all know, it will most likely hinge on Bitcoin’s ability to rise above $53,000. Closing over $1.50 would indicate strength and open the door to $1.70, whilst a finish below $1.35 would indicate further weakness.
Bitcoin price has made an “amazing rebound,” according to Bennett, after plunging by over 20% in a matter of hours approximately a week ago. According to the crypto trader, the current recovery is “simply a relief rally” unless Bitcoin reaches above $53,000.