The technical charts shaped by the Terra collapse are giving important signals for Bitcoin and Cardano. In this article, we take a look at the BTC and ADA charts discussed on social media.
If Cardano confirms this formation, it can 2x
Cardano is at $0.53, up about 3%. The bulls capitulated locally after an unsuccessful attempt to push the price above $0.613 on May 16. On the daily chart, it resembles another bearish round “cup-handle” pattern after the $2.38 high pullback from Nov 9, 2021 and the late March rebound.
Cup and Handle…. pic.twitter.com/KIDqxDWY3B
— Pieter Nierop (@nierop_pieter) May 18, 2022
“Cup and handle”, with handle It is a bullish pattern that resembles a glass, where the glass is in a “u” shape and the handle has a slight downward shift. For this formation to gain strength, Cardano (ADA) bulls may need to clear the horizontal resistance near the daily MA 50 at $0.85. Above this, there is another resistance at the daily MA 200 at $1.19. Breaking these restrictions could mean a 100% rally for Cardano, the eighth largest cryptocurrency.
Bloomberg analysts shared a bearish chart for Bitcoin
According to Bloomberg analysts, the leading cryptocurrency is still stronger despite the recent 15% recovery from the lows it dropped last week. may also fall. BTC now looks more vulnerable than before. According to the article, Bitcoin’s recent bounce led to the formation of a “sole top” pattern on an hourly BTC chart. A head and shoulders formation has become active in it, signifying a reversal from bullish to bearish.
The pattern was activated after BTC fell below the neckline of the formation. Now, bitcoin price must climb above the $30,800 level to avoid any further downside risk.
Peter Schiff expects BTC to drop for similar reasons
As quoted by Cryptokoin.com , prominent Bitcoin critic and fund manager Peter Schiff tweeted earlier this month that the Bitcoin chart shows a combination of double tops and head and shoulders patterns. Both are bearish, so if these formations do occur, he calls it an “unfortunate combination”, saying that there is a long way to go for Bitcoin to fall.
Today, Schiff tweeted that he is surprised that Bitcoin has held around $30,000 for a long time and is resisting further declines.
I must admit that I'm surprised that #Bitcoin has held up this well. But don't get cocky #HODLers. The market never gives investors this much time to buy the bottom. It's more likely this is a bull trap to lure in as many more buyers as possible before the next major leg down.
— Peter Schiff (@PeterSchiff) May 18, 2022
However, the purpose of this is to attract as many investors as possible and then find other believes there is a “bull trap” whose purpose is to provide a price crash.
