Bitcoin's price is on shaky ground, with less than two hours left in the daily trading session. The cryptocurrency is struggling at a key support level of $110,500. The outcome of this battle is crucial for keeping the upward momentum in altcoins. An upcoming inflation report, the first of its kind in seven years, could add a layer of uncertainty, especially since no further reports will follow if the government shuts down. What do these developments mean for Cardano (ADA) and Solana (SOL)?
What Do the Cryptocurrency Charts Suggest?
According to Michael Poppe, there’s a vital lens through which to view the cryptocurrency market: comparing altcoin market capitalizations with that of Bitcoin. He believes this comparison can provide insights into the stages of the market cycle over time. If his analysis holds water, the indications point to an emerging bull market, suggesting potential gains are on the horizon.
“I added the MACD because it represents the current phase of the cycle compared to the previous one. Where are we? At the inception of a bull market. This period marks the longest bear market in altcoin history, frustrating many investors. However, with indicators pointing upwards, selling now would be a shortsighted decision.”
Poppe equates the recent market struggles with major events like the FTX collapse and the COVID-19 pandemic. These events marked the bottom of previous market cycles. The current MACD structure, when compared with earlier cycles, resembles that of the first half of 2020, which eventually led to a strong bull run.
How Will Cardano (ADA) and Solana (SOL) React?
The fate of Cardano (ADA), presently around $0.663, hinges on Bitcoin holding its ground. Market analyst Lark Davis highlights the MACD golden cross’s potential, which has previously sparked a 60% increase in price. While history might not repeat itself, the right external factors could initiate a similar outcome in the crypto market.
“ADA needs to surpass the resistance zone between $0.74 and $0.77. Additionally, a downward resistance line established in August awaits.” – Lark Davis
Carl Moon anticipates a careful, gradual rise for Solana (SOL), foreseeing a move back to $211.
Key conclusions from the current analysis of the crypto market include:
- •Bitcoin’s ability to maintain $110,500 is pivotal for sustaining altcoin progress.
- •The upcoming inflation report could influence market sentiment significantly.
- •Technical indicators like the MACD suggest a shift towards a bullish market phase.
The cryptocurrency market faces a critical juncture. As BTC struggles to hold its pivotal level, the direction in the coming days will be crucial in determining whether altcoins like ADA and SOL will see renewed optimism and growth. Traders and investors are closely monitoring these developments, ready to pivot based on emerging data and trends.